Ohio Administrative Code › Title 3358:5 - Clark State College › Chapter 3358:5-11 - College Policies on Expenditures, Technology In General › Section 3358:5-11-26 - Determining allowable cost policy

Current through all regulations passed and filed through July 1, 2024
The purpose of this policy is to ensure
				federal funds received by Clark state college are spent only on allowable
				activities in accordance with CFR Part 200 Subpart E - Cost Principles, other
				special terms or conditions of the grant award, and/or other applicable state
				and federal guidelines. The college is committed to ensuring that all
				expenditures are appropriate and are conducted in accordance with sponsor terms
				and conditions as well as regulations. The business office has the authority to
				approve or reject expenditures based on allow-ability and
				reasonableness.
The federal government is the largest
				sponsor of externally funded activity at Clark state college. The cost
				principles relating to expenditures on federal awards are contained in the
				office of management of budget's (OMB) uniform administrative requirements,
				cost principles and audit requirements for federal awards, final rule (uniform
				guidance). These cost principles require that any expense charged to a
				federally sponsored project be reasonable and necessary, allocable,
				consistently treated, and conform to any limits or exclusions set forth in
				uniform guidance or the terms and conditions of the award. In addition,
				individual awards may include special terms and conditions, which must be
				considered before allocating certain costs to the award.
This document outlines the general
				procedure for determining allowable costs on federally sponsored awards. The
				goal of this document is to provide clear guidance as to what costs constitute
				appropriate expenses to sponsored projects as well as to achieve consistency in
				expensing practices across Clark State college.
All employees who are involved with the
				administration of sponsored agreements should be familiar with this policy.
				This includes business administrators and departmental sponsored project
				administrators, deans, chairs, principal investigators and other research
				personnel who are involved with sponsored awards.
(A)
								Except where
			 otherwise authorized by statute, costs must meet the following general criteria
			 in order to be allowable under federal awards and most other grant-sponsored
			 programs:
(1)
									The cost must be necessary and reasonable for the
			 performance of the federal award or sponsored agreement and it does not exceed
			 that which would be incurred by a prudent person under the circumstances
			 prevailing at the time the decision was made to incur the cost.
(2)
									The cost must be
			 allocable to a particular project when it has a direct benefit and can be
			 directly attributable to the project or activity being
			 performed.
(3)
									The cost must be consistent with policies and
			 procedures that apply uniformly to both federally financed and other activities
			 of the college.
(4)
									The cost is consistently treated when used in like
			 circumstances (i.e., as direct or indirect costs).
(5)
									The cost must be
			 allowed by Clark state college policy, sponsor policies, and costs conform to
			 any limitations or exclusions set forth by section 200.403 principles or are
			 identified in the federal award.