MTU Header

Home > Policies and Practices > Internal > Sponsored Projects Allowable and Unallowable Costs

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | XYZ
Allowable/Unallowable Direct Costs
  • In addition to being allowable, direct costs must follow the usual guidelines of being reasonable, allocable, applicable, and consistently treated and must comply with University policy.
  • Please note that awarding agency guidelines and University policy may be more rigid than the guidelines listed here
A-21 Ref
Title
Allowable as a direct cost
Unallowable as a direct cost
A
Advertising and Public Relations Allowable only if related to and necessary for performance of the sponsored project (i.e., recruitment of personnel, procurement of goods and services, disposal of scrap/surplus materials) Unallowable for promotional items and memorabilia, including models, gifts and souvenirs
Advisory Councils Allowable for costs incurred by councils or committees when authorized by the awarding agency See allowable column
Alcoholic Beverages Unallowable Unallowable
Alumni Activities Unallowable Unallowable
Audit Costs and Related Services Allowable if specifically required and approved by the awarding agency See allowable column
B
Bad Debt Unallowable Unallowable
Bonding Costs Allowable pursuant to the terms of an award if required for a construction project See allowable column
C
  Capital Expenditures See Equipment and other Capital Expenditures  
Commencement and Convocation Costs Unallowable Unallowable
Communiction Costs Allowable for costs directly attributable to a specific project (i.e., long distance calls. See also OMB A-21, Section F6) Unallowable for recurring line charges, network charges, local telephone costs, and cell phones
Compensation for Personal Services Allowable for services such as salaries, wages and fringe benefits within University policy and for activities contributing to and intimately related to work under the sponsored agreement See allowable column
  Conferences See Meetings and Conferences  
Contingency Provisions Unallowable Unallowable
D
Deans of Faculty and Graduate Schools Unallowable Unallowable
Defense and Prosecution of Criminal and Civil Proceedings, Claims, Appeals and Patent Infringement Unallowable Unallowable
Depreciation and Use Allowances Unallowable Unallowable
Donations and Contributions Unallowable Unallowable
E
Employee Morale, Health, and Welfare Costs Unallowable Unallowable
Entertainment Costs Unallowable Unallowable for cost of entertainment including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals with inadequate substantiation of business purpose, lodging, rentals, transportation, and gratuities)
Equipment and other Capital Expenditures

Allowable only for special purpose equipment (Prior approval from awarding agency required for items with a unit cost of $5,000 or more)

Special Purpose Equipment - used exclusively for research, medical, scientific, or other technical activites

Unallowable for General Purpose Equipment

General Purpose Equipment - not used exclusively for research (i.e., office equipment and furnishings, reproduction and printing equipment, etc.)
F
Fines and Penalties Unallowable Unallowable
Fund Raising and Investment Costs Unallowable Unallowable
G
Gain and Losses on Depreciable Assets Unallowable Unallowable
Goods or Services for Personal Use Unallowable Unallowable
H
  Homeland Security Costs See Plant and Homeland Security Costs  
Housing and Personal Living Expenses Unallowable Unallowable
I
Idle Facilities and Idle Capacity Unallowable Unallowable
Insurance and Indemnification Allowable if related to and necessary for the performance of the sponsored project (Note: malpractice insurance is an allowable cost of research programs only to the extent that the research involves human subjects) See allowable column
Interest Unallowable Unallowable
  Investment Costs See Fund Raising and Investment Costs  
J
K
L
Labor Relations Costs Unallowable Unallowable
Lobbying Unallowable Unallowable
Losses on Other Sponsored Agreements or Contracts Unallowable Unallowable
M
Maintenance and Repair Costs Allowable as a direct cost as necessary to carry out the technical and scientific aspects of and actually used for the performance of a sponsored project See allowable column
Material anc Supplies Costs Allowable as a direct cost when necessary for and actually used for the performance of a sponsored project (office supplies are not allowable) Unallowable for office supplies. Office supplies include copy charges, fax charges, postage/mail room charges, and personal computers unless primarily or exclusively used in the actual conduct of scientific research.
Meetings and Conferences Allowable when the primary purpose is the dissemination of technical information directly related to the project. This includes costs of meals, transportation, rental of facilities, speakers' fees, and other items incidental to such meetings or conferences, excluding entertainment costs See allowable column
Memberships, Subscriptions and Professional Activity Costs Unallowable Unallowable
N
O
P
Patent Costs Allowable if required by the sponsored agreement Unallowable for foreign patents
  Personal Living Expenses See Housing and Personal Living Expenses  
Plant and Homeland Security Costs Allowable under special circumstances and/or if required by the awarding agency See allowable column
Preagreement Costs Allowable with prior approval from the awarding agency See allowable column
  Professional Activity Costs See Memberships, Subscriptions and Professional Acitivity Costs  
Professional Service Costs Allowable when in accordance with OMB A-21, J37 b & c and in compliance with University policy Unallowable for officers or employees of the institution
Proposal Costs Unallowable Unallowable
Publication and Printing Costs Allowable if the costs can be identified with a research project. If the cost is for page charges, the charges are allowable for professional journals if the work is supported by the Federal Government and the charges are levied impartially on all research papers published, not just those funded by federally sponsored authors See allowable column
  Public Relations See Advertising and Public Relations  
Q
R
Rearrangement and Alteration Costs Allowable with prior approval of the awarding agency when incurred specifically for the sponsored project Unallowable for ordinary rearrangement and alteration of facilities.
Reconversion Costs Allowable for costs incurred in the restoration or rehabilitation of the institution's facilities to approximately the same condition existing immediately prior to commencement of a sponsored agreement (fair wear and tear excepted) only with prior approval of the sponsoring agency and when incurred specifically for the sponsored project. Unallowable for normal wear and tear
Recruiting Costs Allowable when related to and necessary for the project and if reasonable (color ads are not considered reasonable - See OMB A-21, Section J1) See allowable column
Relocation Costs Allowable for employment of 12 months or longer Unallowable
Rental Costs of Buildings and Equipment Allowable for reasonable costs (subject to the limitations of leases given in OMB A-21, Section J43 a-d) when incurred specifically for the sponsored project. See allowable column
Royalties and Other Costs for Use of Patents Allowable when necessary for the performance of the sponsored project Unallowable when the Federal Government has a license or the right to free use of the patent or copyright; or when the patent or copyright has been adjudicated to be invalid, has been administratively determined to be invalid, is considered to be unenforceable, or has expired.
S
Scholarships and Student Aid Costs Allowable only when the purpose of the sponsored agreement is to provide training to selected participants and the charge is approved by the sponsoring agency. In order to pay tuition, a stipend must be paid, and the student must be enrolled in an advanced degree program. The activities of the student in relation to the project must be related to the degree program and compensation must be conditioned explicitly on the performance of the work. Must be a bona fide employer-employee relationship (see OMB A-21, Section J45). See allowable column
Selling and Marketing Unallowable Unallowable
Specialized Service Facilities Allowable, but rates must comply with OMB A-21, Section J47 and University policy See allowable column
Student Activity Costs Unallowable Unallowable
  Subscriptions See Memberships, Subscriptions and Professional Activity Costs  
T
Taxes Allowable when the institution is required to pay See allowable column
Termination Costs Applicable to Sponsored Agreements Allowable for costs which would not have arisen had the sponsored agreement not been terminated, provided they meet the requirements of OMB A-21, Section J50 See allowable column
Training Costs Allowable for training provided for employee development for a specific sponsored project. See allowable column
Transportation Costs Allowable when related to goods purchased See allowable column
Travel Costs Allowable for transportation, lodging, subsistence and related items for employees who are in travel status on project-specific business, subject to University policy Non-employee travel unallowable unless related to OMB A-21, Section J2 or specifically required to fulfill the requirements of the solicitation.
Trustees Unallowable Unallowable
U
  Use Allowances See Depreciation and Use Allowances  
V
W
XYZ

 

Sponsored Programs Resource and Outreach Team (SPROT)
(906) 487-3043 sprot@mtu.edu
Webmaster
go to MTU Search A to Z Research