E-900.6 Grant Allowable Cost

This Procedure governs all costs charged to grants and ensures compliance with the Uniform Grant Guidance cost principles. Grant costs must be reviewed with grant agreements to determine if prior approval or advance understanding from the granting agency is required.

All grant charges must be allocable to the grant, necessary and reasonable, and adequately documented.

• Costs are charged to grant(s) in proportion to the benefit of the grant, must be necessary to carry out the program, and must be incurred specifically for the grant.

• A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a "prudent person under the circumstances." The following factors are reviewed to determine reasonableness:

• Adheres to College Policy.

• Ordinary and necessary expenses.

• Use of sound business practices.

• Arm's-length bargaining.

• Adherence to federal, state, and local laws and regulations.

• Facts and circumstances surrounding the cost.

• Justification for exceptions.

• Adequate documentation of grant costs must be provided to the Business Office per College Policies and Procedures.

All grant charges must conform to applicable limitations/exclusions, College Policies, Generally Accepted Accounting Principles (GAAP), and the granter's requirements.

• All College Policies related to expenses and procurement apply to grant costs.

• Costs charged to grants must comply with any limitations or exclusions set forth in the grant agreement or the Federal Cost Principles.

• Costs are consistently treated through the application of GAAP.

• Costs charged to a grant cannot be included as costs or used to meet cost-sharing or matching requirements of any other federally financed program in the current or a prior period.