The Office of Management and Budget Circular A-21 sets forth principles for determining costs applicable to Federal grants, contracts, and other agreements with education institutions. The Circular prescribes which costs are allowable and not allowable for recovery and of the costs considered allowable, whether the institution most appropriately should classify the costs as direct or indirect.
The expenses listed below are considered unallowable as direct charges to federally sponsored programs:
|
Generally unallowable as a
direct charge to sponsored account
|
Account Description
|
| |
Books and periodical subscriptions |
| |
Clerical and administrative salaries |
| |
General purpose office equipment, i.e., printers, computers, copiers, etc. |
| |
Office supplies |
|
Always unallowable as a
charge to sponsored account
|
|
| |
Bad debts |
| |
Losses on other sponsored agreements |
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Alcoholic beverages |
| |
Meals and entertainment |
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Fines and penalties |
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Donations and contributions |
In order to justify classification of normally indirect charges as direct, the cost must be:
a) budgeted as a direct cost as a clear indication of the planned need with sufficient justification (refer below to item c); and
b) not prohibited by sponsor restriction as a direct charge; and
c) used in quantity or circumstances beyond normal activity or in delivery of a major program.
All requests are subject to final approval by the Office of Research Administration.