APPLICABLE CREDITS

{
  "id": "MLC-T-ENV-001894",
  "term": "APPLICABLE CREDITS",
  "field": "Environment",
  "definition": "1. Those receipts or reduction of expenditure type transactions that offset or reduce expense items allocable to Federal awards as direct or indirect costs, e.g., purchase discounts; rebates or allowances, recoveries or indemnities on losses, insurance refunds or rebates, and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the governmental unit relate to allowable costs, they shall be credited to the Federal award either as a cost reduction or cash refund, as appropriate.\n\n2. In some instances the amounts received from the Federal Government to finance activities or service operations of the governmental unit should be treated as applicable credits. Specifically, the concept of netting such credit items (including amounts used to meet cost sharing or matching requirements) should be recognized in determining the rates or amounts to be charged to Federal awards. (See Attachment B of OMB Circular A 87, item 15, \"Depreciation and use allowances,\" for areas of potential application in the matter of Federal Financing of activities.)",
  "subject": "Laws, regulations and executive orders",
  "references": [
    "Grants and Debarment Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/applicable-credits/"
}