Policy on Unallowable Costs
| Policy Number | ACA-021 |
|---|---|
| Effective Date | July 18, 2006 |
| Responsible Office/Person | Academic Affairs |
| Related Policies | |
| Additional History | |
| Additional References |
University of Massachusetts Dartmouth
Academic Affairs Division
Policy on Unallowable Costs
Purpose
The purpose of this policy is to identify costs that cannot be charged to federal programs per federal regulations.
Background
Allowable costs on sponsored projects are defined by specific sponsor guidelines as well as federal, state and university policies and guidelines. The Office of Management and Budget (OMB) Circular A-21 “Principles for Determining Costs Applicable to Grants, Contracts, and Other Agreements with Educational Institutions” provides principles for determining allowable costs on sponsored agreements. The Circular indentifies specific costs that may not be charged to sponsored agreements.
Unallowable Costs
The following costs have been identified in OMB Circular A-21 as not being allowable to sponsored agreements as either a direct charge or as part of the F&A recovery:
- Advertising, except for help wanted and other advertisements for services necessary to carry out the award.
- Alcoholic Beverages
- Alumni Activity
- Bad Debts
- Contingency Reserves
- Commencement and Convocations
- Donations and Contributions
- Entertainment Costs
- Excessive Employee Recruitment Costs
- Fines and Penalties
- Fund Raising and Investment Costs
- Goods or Services for Personal Use
- Housing and Personal Living Expenses
- Lobbying Costs
- Losses on other Sponsored Agreements
- Memberships in Civic or Community Organizations or in Social or Dining Clubs
- Costs of Selling and Marketing any Services of the Institution
- Student Activity Costs
- First Class Travel
This list may exclude expenditures that have been explicitly unallowed by the University of Massachusetts. See the University policy for “Management of University Funds”.
