Adult Education Administrator's Manual
Revised August 2007
Policy
Cost
Principles
The following are current guidelines related to specific costs:
Guidelines Related to Specific Costs:
Advertisement for Recruitment of Grant Personnel
- Advertisements are allowable only for recruitment of grant personnel
and when the advertisement is not in color and not excessive in size.
Audit Fees
- Audit fees and expenses may not be charged to state-funded grants.
- Audit fees/expenses are allowable only when conducted in accordance
with OMB
Circular A-133, Audits. Audit fees/expenses may not be charged
as direct cost when such audit services costs are part of the grantee
organization’s indirect cost pool.
Awards for Recognition and Incentives for Participation
- Minimal cost certificates, plaques, ribbons, small trophies, or
instructionally-related items to be used in the classroom such as pens/pencils
are acceptable incentives for participation in program activities or
awards for recognition.
- Gifts or items that appear to be gifts are not allowable.
- Souvenirs, memorabilia, or promotional items, such as T-shirts,
caps, tote bags, key chains, etc., are not allowable.
- “Door prizes”, movie tickets, gift certificates, passes
to amusement parks, etc. may be donated by others but may not be purchased
with grant funds.
- Food, snacks, beverages, refreshments, meals, etc. are not allowable
incentives/awards.
Cellular Telephones for Personal Use
- A cellular telephone for personal use is not an allowable cost.
Consultants
- If this application is approved, the applicant shall not use or
pay any consultant in the conduct of this application if the services
to be rendered by such consultant could have been rendered by applicant's
employees. Consultants must be selected based on demonstrated competence,
qualifications, and experience and on the reasonableness of the proposed
fee.
Employee Contributions to Voluntary Retirement Plan
- Employer contributions to voluntary retirement plans such as 403b
or 401k are not allowable costs.
Field Trips
- Must be paid from other than grant funds.
Food and Beverage Costs (if allowable in the grant program)
- Expenditures for light snacks, beverages, and/or refreshments are
allowable only for students and/or parents under the following conditions:
- Full meals are not allowable for these purposes under any circumstances.
- Expenditures related to awards banquets/ceremonies, celebrations,
or social events are not allowable under any circumstances.
- Expenditures must be reasonable in cost, necessary to accomplish
program objectives, and an integral part of the instructional program,
including:
- Nutritional snacks for students in extended day (i.e., after-school)
programs;
- Nutritional snacks for children in child care while parents are
participating in grant activities;
- Food necessary to conduct nutrition education programs for parents;
and
- Parent involvement activities where refreshments are necessary
to encourage participation/attendance by parents, such as in low-income
areas, and thus meet program objectives.
Interest Paid
- Interest paid in a prior grant period may not be charged retroactively
to this grant period.
Land Purchase and Improvements
- Land purchase and improvements to land are not allowable costs,
unless specifically authorized in the grant program.
Legal Fees
- Legal fees/expenses are allowable only as necessary for the administration
of the grant program. Retainer fees are not allowable costs.
Membership in Civic Organizations or
- Memberships in civic organizations and memberships in organizations
that are substantially engaged in lobbying are not allowable costs.
Personal Calendaring Systems
- Calendaring systems to manage personal calendars—paper calendars,
palm pilots, electronic/software calendars, etc. are not allowable
costs.
Printing Costs
- Printing costs are allowable for not more than two-color printing
on any item. Any printing costs beyond the cost of two-color printing
must be paid by the grantee from state or local sources.
Professional or Individual Liability Insurance
- Professional liability insurance for individual employees is not
an allowable cost.
Renovation, Remodeling, or Construction
- Renovation, remodeling, or construction is unallowable unless specifically
designated as allowable in the authorizing statute.
Substitute Pay for Private Nonprofit Schools
- Substitute pay for private nonprofit school teachers is not allowable
under any circumstances.
Training/Technical Assistance on Grant Writing or obtaining
other grant funds is not allowable.
- Funds may not be used for training/technical assistance on grant
writing or obtaining grant funds. Funds may not be used for fundraising
activities.
Transportation Costs
- Transportation costs to/from grant activities, other than those
incurred for the purpose of transporting students to and from the regular school
day, are allowable expenditures. Field trips are not allowable from
grant funds.
Tuition
- Tuition fees, either paid directly to an institution or on a reimbursement
basis are allowable only for courses directly related to the
grant program.
The Cost Principles Chart should be used
as a quick reference to determine if a particular cost is generally allowed
in the grant. This chart is not intended to reflect all allowable expenses,
but rather to help make the most common determinations.
Cost Principles Chart
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