Allowable, allocable, and reasonable costs

The United States Office of Management and Budget (OMB) has established cost principles for educational institutions. Costs for university projects with funding should comply with guidelines stated in the OMB Circular A-21

General guidelines for verifying costs:

Is the cost allowable? —

• Must be allowable under U.S. office of OMB Circular A-21

Is it allocable? —

• If it is identifiable and has documentation support.

Is it reasonable? —

• Whether it is reasonable depends on the amount and kind of cost.

Cost transfers

Subrecipient monitoring

Effort reporting

Prior approvals

 

[Coming Soon]

Periodic reports