List of Selected Items of Cost Contained in 2 CFR 225 (codified OMB Circular A-87) (Effective August 31, 2005) The following exhibit provides an updated listing of selected items of costs contained in 2 CFR 225 based on the changes contained in the Federal Register notice dated August 31, 2005. This is available at the following link: . This exhibit lists the selected items of costs along with a cursory description of its allowability. The numbers in parentheses refer to the cost item in Appendix B of 2 CFR 225. The reader is strongly cautioned not to rely exclusively on this summary exhibit but to place primary reliance on the reference circular text. There are also cost items listed auditors may identify in the testing that are not specifically addressed in the CFR. Selected Items of Cost Exhibit 1 Selected Cost Item 2 CFR 225, Appendix B State, Local, & Indian Tribal Governments Advertising and public relation costs (1) – Allowable with restrictions Advisory councils (2) – Allowable with restrictions Alcoholic beverages (3) – Unallowable Alumni/ae activities Not specifically addressed Audit costs and related services (4) – Allowable with restrictions and as addressed in OMB Circular A-133 Bad debts (5) – Unallowable Bonding (6) – Allowable with restrictions Commencement and convocation costs Not specifically addressed Communication costs (7) – Allowable Compensation for personal services (8) – Unique criteria for support Compensation for personal services – organization furnished automobile Not specifically addressed Compensation for personal services - sabbatical leave costs Not specifically addressed Compensation for personal services - severance pay (8)(g) - Allowable with restrictions Contingency provisions (9) – Unallowable with exceptions Deans of faculty and graduate schools Not specifically addressed Defense and prosecution of criminal and civil proceedings (10) – Allowable with restrictions Depreciation and use allowances (11) – Allowable with qualifications Donations and contributions (12) – Unallowable (made by recipient); not reimbursable but value may be used as cost sharing or matching (made to recipient) Employee morale, health, and welfare (13) – Allowable with restrictions Entertainment costs (14) – Unallowable
provisions of this chapter, including the requirements listed in rule 5101:9-4-07 of the Administrative Code.” See the above note for the revisions to this administrative code section and their applicability. OAC 5101:9-4-15 (eff. 2-4-12) states “Assets acquired in whole or in part with federal funds must be disposed of in compliance with 2 (C.F.R.) part 225, 7 C.F.R. part 277, 29 C.F.R. part 97, and 45 C.F.R. part 92 and part 95 in accordance with state and local requirements. The most restrictive regulations shall apply.” This section also states the County Commissioners must be notified for disposal of assets and gives disposal options when an asset is not needed for public use or is obsolete or unfit for the use for which it was acquired. OAC 5101:9-4-11 (eff. 2-17-12, new eff. 2-21-15) states “The county family service agency shall follow federal, state, and local regulations when seeking federal financial participation (FFP) for the costs associated with the rent or lease of property or equipment. The costs must be necessary and reasonable for proper and efficient performance and administration of the specific program financing the cost and must be in compliance with 2 C.F.R. part 225.” This section also gives guidance on determining the reasonableness of the rental and lease agreement costs. See the above note for the revisions to this administrative code section and their applicability.