|
What are allocable
costs?
Allocable means that the
cost must benefit the account to which it is charged in proportion to the
benefit that it provides. According to OMB A-21C4, a cost is allocable if:
 |
it
is incurred solely to support work under the sponsored agreement;
|
|
|
it
benefits both the sponsored agreement and other work of the
institution, in proportions that can be approximated through the use
of reasonable methods;
|
|
|
it
is necessary for the overall operation of the institution and is
deemed assignable in part to sponsored projects. (In other
words, if the cost provides a benefit to a project equal to 50
percent of the cost, then only 50 percent should be charged to that
project.)
|
|
|
any cost that is allocable to a federally sponsored
agreement may not be shifted to another sponsored agreement to meet
deficiencies caused by cost overruns or other funding
considerations. |
|
Back |
|
