COST
PRINCIPLES
| Items
of Cost |
OMB
Circular
A-87 |
OMB
Circular
A-122 |
OMB
Circular
A-21 |
| Pre-Award (Pre-Agreement)
Costs (cont'd) |
Pre-award costs are allowable
only to the extent that they would have been allowable if incurred
after the effective date of the award. |
Pre-award costs are allowable
only to the extent that they would have been allowable if incurred
after the effective date of the award. |
Pre-award costs are allowable
only to the extent that they would have been allowable if incurred
after the effective date of the award. |
| Professional and Consultant
Services |
Allowable when provided by non-employees
and when the grantee organization does not possess the expertise.
"Honorariums" are not allowable costs in Texas. The
term "fee" must be used in lieu of honorarium in all
accounting records and consultant agreements. |
Allowable when provided by non-employees
and when the grantee organization does not possess the expertise.
Refer to OMB A-122 for additional specifications.
"Honorariums" are not allowable costs in Texas. The
term "fee" must be used in lieu of honorarium in all
accounting records and consultant agreements. |
Allowable when provided by non-employees
and when the grantee organization does not possess the expertise.
Refer to OMB A-21 for additional specifications.
"Honorariums" are not allowable costs in Texas. The
term "fee" must be used in lieu of honorarium in all
accounting records and consultant agreements. |
| Promotional Items
(such as T-shirts, caps, tote bags, key chains, etc.) |
Unallowable. |
Unallowable. |
Unallowable. |
| Proposal Costs (i.e.,
preparing grant applications/proposals) |
The cost of preparing grant applications
for continuing formula entitlement grant programs is allowable as a
pre-award cost requiring prior specific approval by TEA.
NOTE: Ed-Flex programs do not require prior approval
from TEA. For all other grant programs, these costs must
be specifically budgeted and approved by TEA in the applicable
application prior to the expenditure of funds.
TEA does not allow costs of preparing grant applications/
proposals for competitive discretionary grants.
Costs for preparing applications/
proposals to obtain other grant monies are not
allowable. |
The cost of preparing grant applications
for continuing formula entitlement grant programs is allowable as a
pre-award cost requiring prior specific approval by TEA.
NOTE: Ed-Flex programs do not require prior approval
from TEA. For all other grant programs, these costs must
be specifically budgeted and approved by TEA in the applicable
application prior to the expenditure of funds.
TEA does not allow costs of preparing grant applications/
proposals for competitive discretionary grants.
Costs for preparing applications/
proposals to obtain other grant monies are not
allowable. |
The cost of preparing grant applications
for continuing formula entitlement grant programs is allowable as
a pre-award cost requiring prior specific approval by TEA.
NOTE: Ed-Flex programs do not require prior approval
from TEA. For all other grant programs, these costs must
be specifically budgeted and approved by TEA in the applicable
application prior to the expenditure of funds.
TEA does not allow costs of preparing grant applications/
proposals for competitive discretionary grants.
Costs for preparing applications/
proposals to obtain other grant monies are not
allowable. |
| Public Relations |
Allowable only when specifically
required by the grant award; for communicating with the public with
regard to grant activities; or to keep the public informed on matters
of public concern and as specified in OMB A-87, Attachment B, section
2.d.
Costs of public relations designed solely to promote the LEA
are unallowable. |
Allowable only when specifically
required by the grant award; for communicating with the public with
regard to grant activities; or to keep the public informed on matters
of public concern and as specified in OMB A-122, Attachment B, section
1.
Costs of public relations designed solely to promote the organization
are unallowable. |
Allowable only when specifically
required by the grant award; for communicating with the public with
regard to grant activities; or to keep the public informed on matters
of public concern and as specified in OMB A-21, section J.1.
Costs of public relations designed solely to promote the institution
are unallowable. |
| Publication and Printing
Costs (includes distribution and mailing of publications) |
Allowable. |
Allowable as indirect costs. Allowable
as direct cost to grant program only with specific approval from
TEA.
NOTE: Ed-Flex programs do not require specific approval from
TEA. For all other grant programs, these costs be specifically
budgeted and approved in the applicable grant application prior
to expending funds. |
Not addressed. |
| Rearrangements and
Alterations |
Allowable for ordinary alterations
unless prohibited in program requirements. Prior approval required
by TEA if costs are incurred specifically for a grant. These costs
must be specifically budgeted and approved in the applicable grant
application prior to expending funds. |
Allowable for ordinary alterations
unless prohibited in program requirements. Prior approval required
by TEA if costs are incurred specifically for a grant. These costs
must be specifically budgeted and approved in the applicable grant
application prior to expending funds. |
Allowable for ordinary alterations
unless prohibited in program requirements. Prior approval required
by TEA if costs are incurred specifically for a grant. These costs
must be specifically budgeted and approved in the applicable grant
application prior to expending funds. |
| Reconversion Costs |
Allowable to restore facility
to condition existing immediately prior to the grant award (less
costs related to normal wear and tear). |
Allowable to restore facility
to condition existing immediately prior to the grant award (less
costs related to normal wear and tear). |
Allowable to restore facility
to condition existing immediately prior to the grant award (less
costs related to normal wear and tear). |
| Recruiting and Relocation
Costs |
Not addressed. |
Allowable as specified in OMB
A-122. |
Allowable as specified in OMB
A-21. |
| Reference Materials |
Not specifically addressed, but
allowable when related to the grant program. |
Not specifically addressed, but
allowable when related to the grant program. |
Not specifically addressed, but
allowable when related to the grant program. |
| Rental Costs |
Allowable to the extent that the
rates are comparable to that of other rental property in the locale
and as specified in OMB A-87. |
Allowable to the extent that the
rates are comparable to that of other rental property in the locale
and as specified in OMB A-122. |
Allowable to the extent that the
rates are comparable to that of other rental property in the locale
and as specified in OMB A-21. |
| Royalties and Other
Costs for Use of Patents |
Not addressed. |
Allowable as specified in OMB
A-122 |
Allowable as specified in OMB
A-21. |
| Sabbatical Leave Cost |
Not addressed. |
Not addressed. |
Allowable provided Institution
has uniform policy. |
| Scholarships and Student
Aid Costs |
Not addressed. |
Not addressed. |
Allowable only when the purpose
of the grant is to provide training to selected participants and
with specific approval from TEA as specified in OMB A-21. |
| Selling and Marketing |
Not addressed. |
Unallowable for
selling or marketing any products or services of the organization.
Allowable as direct costs with specific approval from TEA when
they are necessary for the performance of the grant program. |
Unallowable. |
| Severance Pay |
Allowable if required by law,
employer-employee agreement, or agency policy as specified in OMB
A-87, section 11 g. Specific prior approval required from TEA on
a case-by-case basis for unusual or mass layoff costs. |
Allowable if required by law,
employer-employee agreement, or agency policy as specified in OMB
A-122. Specific prior approval required from TEA on a case-by-case
basis for unusual or mass layoff costs. |
Allowable if required by law,
employer-employee agreement, or agency policy as specified in OMB
A-21. Specific prior approval required from TEA on a case-by-case
basis for unusual or mass layoff costs. |
| Souvenirs |
Unallowable. |
Unallowable. |
Unallowable. |
| Specialized Service
Facilities |
Not addressed. |
Allowable as specified in OMB
A-122 |
Allowable as specified in OMB
A-21. |
| Student Activity Cost |
Not addressed. |
Not addressed. |
Unallowable unless
specifically approved by TEA as part of the grant agreement. These
costs must be specifically budgeted and approved in the applicable
application prior to expenditures. |
| Subscriptions |
Allowable for business, professional,
and technical periodicals when related to grant program. Subscriptions
must be in the name of the grantee organization and not in the name
of an individual. |
Allowable for business, professional,
and technical periodicals when related to grant program. Subscriptions
must be in the name of the grantee organization and not in the name
of an individual. |
Allowable for business, professional,
and technical periodicals when related to grant program. Subscriptions
must be in the name of the grantee organization and not in the name
of an individual. |
| Taxes |
Allowable except for self-assessed
taxes |
Allowable as specified in OMB
A-122 |
Allowable as specified in OMB
A-21. |
| Termination of Grant
Award |
Not addressed. |
Allowable as specified in OMB
A-122 |
Allowable as specified in OMB
A-21. |
| Training and Education |
Training for employee development
is allowable.
Although not addressed in OMB A-87, college level courses are
allowable only when the courses are relative to the field in which
the employee is now working or may reasonably be expected to work. |
Training for employee development
is allowable.
College level courses are allowable only when the courses are
relative to the field in which the employee is now working or may
reasonably be expected to work and are limited to the restrictions
in OMB A-122. |
Although not specifically addressed
in OMB A-21, training for employee development is allowable.
College level courses are allowable only when the courses are
relative to the field in which the employee is now working or may
reasonably be expected to work. |
| Transportation of
Goods |
Allowable for transporting goods
purchased with grant funds. |
Allowable for transporting goods
purchased with grant funds. |
Allowable for transporting goods
purchased with grant funds. |
| Travel Costs (for
employees) |
Allowable for employees traveling
on official business incident to grant program.
Costs may not exceed maximum allowable rates for in-state or
out-of-state travel.
In-State Travel:
Mileage not to exceed 35 cents per mile or local
policy, whichever is less.
Airfare at lowest available airfare.
Car rental (allowable only where rental car
is more cost effective than other transportation such as taxi or
shuttle).
Actual cost of lodging not to exceed $80 per
night.
Actual cost of meals not to exceed $30 per day.
Registration fees to attend conferences or seminars.
Out-of-State Travel:
Reimbursement for mileage may not exceed the rate established
by the Texas Comptroller or local policy, whichever is less.
Airfare at lowest available airfare.
Car rental (allowable only where rental car
is more cost effective than other transportation such as taxi or
shuttle).
Actual cost of lodging and mealsnot
to exceed federal government rates for the locale.
For all travel, if local policy is less, reimbursement
may not exceed local policy. If local policy is more, any amount
above the maximum allowable state rates must be paid from state
or local sources. |
Allowable for employees traveling
on official business incident to grant program.
Costs may not exceed maximum allowable rates for in-state or
out-of-state travel.
In-State Travel:
Mileage not to exceed 35 cents per mile or local
policy, whichever is less.
Airfare at lowest available airfare.
Car rental (allowable only where rental car
is more cost effective than other transportation such as taxi or
shuttle).
Actual cost of lodging not to exceed $80 per
night.
Actual cost of meals not to exceed $30 per day.
Registration fees to attend conferences or seminars.
Out-of-State Travel:
Reimbursement for mileage may not exceed the rate established
by the Texas Comptroller or local policy, whichever is less.
Airfare at lowest available airfare.
Car rental (allowable only where rental car
is more cost effective than other transportation such as taxi or
shuttle).
Actual cost of lodging and meals not
to exceed federal government rates for the locale.
For all travel, if local policy is less, reimbursement
may not exceed local policy. If local policy is more, any amount
above the maximum allowable state rates must be paid from state
or local sources. |
Allowable for employees traveling
on official business incident to grant program.
Costs may not exceed maximum allowable rates for in-state or
out-of-state travel.
In-State Travel:
Mileage not to exceed 35 cents per mile or local
policy, whichever is less.
Airfare at lowest available airfare.
Car rental (allowable only where rental car
is more cost effective than other transportation such as taxi or
shuttle).
Actual cost of lodging not to exceed $80 per
night.
Actual cost of meals not to exceed $30 per day.
Registration fees to attend conferences or seminars.
Out-of-State Travel:
Reimbursement for mileage may not exceed the rate established
by the Texas Comptroller or local policy, whichever is less.
Airfare at lowest available airfare.
Car rental (allowable only where rental car
is more cost effective than other transportation such as taxi or
shuttle).
Actual cost of lodging and meals not
to exceed federal government rates for the locale.
For all travel, if local policy is less, reimbursement
may not exceed local policy. If local policy is more, any amount
above the maximum allowable state rates must be paid from state
or local sources. |
| Travel Costs (for
employees) (continued) |
Specific approval required for
travel of officials (i.e., Supt., Exec. Dir., etc.). For all other
programs except Ed-Flex programs, such costs must be budgeted in
the applicable application and approved by TEA prior to expenditure
of funds. NOTE: Ed-Flex programs do not require specific approval.
Air travel by other than commercial airlines is unallowable. |
Specific approval required for
travel of officials (i.e., Supt., Exec. Dir., etc.). For all other
programs except Ed-Flex programs, such costs must be budgeted in
the applicable application and approved by TEA prior to expenditure
of funds. NOTE: Ed-Flex programs do not require specific approval. |
Specific approval required for
travel of officials (i.e., Supt., Exec. Dir., etc.). For all other
programs except Ed-Flex programs, such costs must be budgeted in
the applicable application and approved by TEA prior to expenditure
of funds. NOTE: Ed-Flex programs do not require specific approval. |
| Trustees |
Not addressed. |
Travel costs pertaining to the
conduct of grant activities are allowable. |
Travel costs pertaining to the
conduct of grant activities are allowable. |
| Tuition and fees related
to tuition |
Allowable as it pertains specifically
to the grant program. |
Not specifically addressed, but
allowable as it pertains to the grant program. |
Not specifically addressed, but
allowable as it pertains to the grant program. |
| Underrecovery of Costs
under Federal Agreements |
Unallowable. |
Not addressed. |
Not addressed. |
| Utilities |
Allowable for grant activities
conducted before or after school, weekends, or during the summer. |
Allowable for grant activities
conducted before or after school, weekends, or during the summer. |
Allowable for grant activities
conducted before or after school, weekends, or during the summer. |
