ALLOWABLE COSTS

{
  "id": "MLC-T-ENV-001109",
  "term": "ALLOWABLE COSTS",
  "field": "Environment",
  "definition": "Even though a proposal may involve an eligible applicant, eligible activity, and eligible purpose, grant funds cannot necessarily pay for all of the costs that the recipient might incur in the course of carrying out the project. Allowable costs are determined by reference to the applicable EPA regulations and to the OMB Circulars A-21, Cost Principles for Education Institutions, A-122, Cost Principals for Nonprofit Organizations, and A-87, Cost Principles for State, Local and Indian Tribal Governments. Some examples of costs which are allowable include: accounting, budgeting, communications, direct salaries, fringe benefits, equipment, supplies, and allocable indirect costs, as long as these costs are Anecessary and reasonable. Examples of unallowable costs include: alcohol, entertainment costs, legislative expenses, bad debts and contingencies, and charging indirect type costs as direct costs. These are more explicitly defined in the above referenced circulars. (40 CFR Par 35 Subpart A)",
  "subject": "Laws, regulations and executive orders",
  "references": [
    "Grants and Debarment Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/allowable-costs/"
}