Cost Principles for State and Local Governments and Nonprofit Organizations

If an entity receives federal grants, or expects to in the near future, it should ensure that one or more of their employees have a strong working knowledge of the federal Cost Principles. Auditors of federal programs use the cost principles as criteria to evaluate compliance with contract provisions.  The cost principles apply to almost all federal grant programs and contain specific prohibitions against entertainment and some legal fees.  The cost principles also advise grantees on how to document payroll expenditures.    

Course Objectives:

After finishing the course, participants will be able to:

• Differentiate between principles applicable to state and local governments and not-for-profits
• Sequence the four layers of regulations regarding program cost
• Discuss the general rules for allowability of costs
• Judge whether an item of cost is allowable per the cross cutting principles
• Detect which allowability principle has been violated
• Distinguish between an indirect cost and a direct cost
• Review charges regarding compensation for allowabiliity
• Judge which legal costs are allowable for charge to federal programs
• Determine how to treat services donated in support of a federal award
• Distinguish between lobbying costs and normal operating costs of a program 
• Assess which costs are allowable regarding facilities and equipment
• Distinguish between idle capacity and idle facilities 
• Detect travel and entertainment costs that are not allowable
• Determine if pre-award costs are allowable

Program Level:  basic

Who Should Attend:  Grantee and pass-through organizations, federal grant personnel and auditors of federal grant programs

Recommended CPE Credits:  8 hours

This course qualifies for Yellow Book CPE credit.