Costs must be:

1. Allowable
2. Reasonable
3. Allocable
4. Consistently applied

Uniform Administrative Requirements

• OMB Circular A-110, Colleges and Universities
• OMB Circular A-110, Non-Profit Organizations
• OMB Circular A-102, State and Local Governments
• OMB Circular A-110, For Profit and individuals

Cost Principles

• OMB Circular A-21, Colleges and Universities
• OMB Circular A-122, Non-Profit Organizations
• OMB Circular A-87, State & Local Governments
• 48 CFR Part 31, For-profits and individuals

Audit Principles

• OMB Circular A-133, Colleges and Universities, Non-Profits, and State and Local Governments
• Program specific, For-profits and individuals

All OMB circulars can be found at: http://www.whitehouse.gov/omb/circulars/

Code of Federal Regulations (CFR) can be found at: http://www.access.gpo.gov/nara/cfr/cfr-table-search.html

Personnel

• Include salaries & wages (list fringe benefits separately).
• Provide breakdown of personnel by classification (i.e. job title).
• State time commitment in hours or percent of time for each person/position.
• List total charges for each person/position with calculations of costs.
• Special considerations needing explanation:
  • Are all individuals employees of the applicant organization
  • Is a cost of living increase built into the budget?
  • Are salary increases justified for the grant period?

Fringe Benefits

• Identify separately from salaries/wages.
• Provide description of benefits received by personnel when the fringe benefit rate is more than 35% of the associated salary (include copy of institution's fringe benefit rate sheet)

Travel

• Provide breakdown of travel costs totaling more than $5,000 or 5% of the award (whichever is greater), including:
  • Destination and duration
  • Estimated cost and type of transportation
  • Number of travelers and related lodging and subsistence
• Budget narrative should briefly describe the travel involved, its purpose, and explain how the proposed travel is necessary for successful completion of the project regardless of dollar amount.
• If travel details are unknown, basis for proposed costs should be explained.
• "Fly America Act"
  • Limits the use of foreign flag carriers, not foreign travel
  • Waiver only allowed for specific instances and may require prior approval
  • Guidelines can be found at: http://www.uaf.edu/grcon/manual/sec_g.html
• University of Alaska travel regulations can be found at: http://www.alaska.edu/bor/regulation/5r/r05-02-06.html

Equipment

• Equipment is defined as non-expendable, tangible personal property with a unit cost of $5,000 or more and has a useful life of more than one year.
• Items that do not meet the "Equipment" definition should be listed under supplies.
• List each piece of equipment to be purchased and provide description of how it will be used in the project.
• Lease vs. purchase analysis should be completed as appropriate.
• Budget narrative should explain why the equipment is necessary for successful completion of the project.
• General use equipment (e.g. computers, faxes, etc.) must be used 100% for the proposed project if charged directly to the grant.

Supplies

• Explanation necessary for supplies costing more than $5,000 or 5% of the award - whichever is greater.
• Requirements for supplies which exceed threshold listed above:
  • Explain the type of supplies to be purchased or the nature of the expense in the budget narrative.
  • Provide a breakdown of supplies by quantity and cost per unit if applicable and indicate basis for estimate of supplies (i.e. historical use on similar projects).

Subawards / Subcontracts

• List each subaward/subcontract as a separate line item.
• List subaward/subcontract's DUNS number.
• Describe products/services to be obtained and indicate the applicability or necessity of each to the project.
• Provide separate budgets for each subaward/subcontract regardless of the dollar value, and indicate the basis for the cost estimate.
• List all subaward/subcontract costs under the "Contractual" line item on the SF-424A.
• Provide a copy of the subaward/subcontract's negotiated Indirect Cost Rate Agreement.

Other Direct Costs

• List items by type of material or nature of expense.
• Breakdown total costs by quantity and cost per unit if applicable.
• State necessity of "other" costs for successful completion of the project.
• Exclude unallowable costs such as alcohol, contingency, entertainment, and fundraising.

Indirect Costs

• Based on an approved Indirect Cost Rate Agreement from a cognizant Federal agency, and a copy of an approved rate agreement should be provided to assist in the review of the application.
• When calculating Modified Total Direct Costs (MTDC), indirect costs are not charged on tuition, equipment, and subawards exceeding $25,000 (only calculate on the first $25,000).