Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 1 - Drinking Water Systems Emergency Loan Fund Program Regulations › Section 33-1-IV - APPENDICES › Appendix 33-1-33-1-IV-A - Determination of Eligible and Allowable Costs

Current through June 25, 2024
A. General
The terms "eligible" and "allowable" are often used
				  interchangeably. Although technically a difference exists between these terms
				  as defined below, their synonymous use will not influence the outcome of a cost
				  determination.
Eligible costs are those costs in which DWSELF loan
				  participation is authorized pursuant to applicable statute. Allowable costs are
				  those project costs that are eligible; are only for projects or portions
				  thereof that meet the definition of an emergency as established in Section
				  I.C.(14) of this regulation; are reasonable, necessary, allocable to the
				  project, within the established project scope and budget, in conformance with
				  this DWSELF regulation and are approved as allowable by the Department.
An example best illustrates the difference between the two
				  terms. Emergency improvements to drinking water systems, including construction
				  of new drinking water systems or repair of existing drinking water systems, are
				  eligible. Building of roads, fire fighting vehicles, wastewater treatment
				  projects, etc. are not eligible.
Within a generic eligible category of projects, costs may be
				  allowable or unallowable for loan participation. For example, the cost of
				  building a distribution line is eligible, but such costs incurred after the
				  thirty-day deadline established in Section III.C.(9)(e) of this regulation are
				  unallowable.
In addition to and/or the absence of a specific cost item
				  described in the DWSELF regulations, to be allowable under the DWSELF loan
				  program, costs must meet the following general criteria:
(1) Be necessary and reasonable for the
				proper and efficient administration and construction of the project, be
				allocable to and within the defined scope of the project, and not be a general
				expense required to carry out the overall responsibilities of the loan
				recipient.
(2) Be authorized or not
				prohibited under state or local laws or regulations.
(3) Conform to any limitations or exclusions
				set forth in state laws or other governing limitations as to types or amounts
				of cost items.
(4) Be consistent
				with policies, regulations, and procedures that apply uniformly to both state
				assisted and other activities of the loan recipient.
(5) Be accorded consistent treatment through
				the application of generally accepted accounting principles appropriate to the
				circumstances.
(6) Not be allocable
				to, or included as, a cost of any other Federally or State financed program in
				either the current, prior, or future period.
(7) Be approved as allowable by the
				Department.
(8) Be within the scope
				of the project and per the loan agreement.
(9) Eligible costs will be determined without
				regard to any previous DWSELF or DWSIRLF loan funding provided for facilities
				to be replaced, upgraded, or rehabilitated, except as described in Section
				II.D.(6) of this regulation.
(10)
				Are necessary for the immediate preservation of public health or the immediate
				restoration of a condition of usefulness of a public water system, or as
				otherwise allowed in Section II.B. of this regulation.