Unallowable and Allowable with Restrictions Costs

Review the following list of selected cost items. For more details on allowable costs refer to 2CFR part 200, subpart E – Cost Principles and EDGAR Part 76

Cost Item Citation Unallowable/Allowable with restrictions Advertising and Public Relations §200.421 Allowable with restrictions Alcoholic Beverages §200.423 Unallowable Alumni Activities §200.424 Unallowable Bad Debt §200.426 Unallowable Capital Expenditures §200.439 Unallowable Commencements, Graduation §200.429 Unallowable Ceremonies Cost of institution furnished automobiles §200.431 Unallowable that relate to personal use by employees Donations and Contributions §200.434 Unallowable Drug Testing OCTAE Unallowable Entertainment §200.438 Unallowable Fines and Penalties §200.441 Unallowable Fund Raising, Solicitations, Gifts or §200.442 Unallowable Investment costs GED Administration, Test Fees, Battery OCTAE Unallowable Rentals Goods and Services for Personal Use §200.445 Unallowable Lobbying §200.450 Unallowable Meals for Meetings /Conferences §200.432 Allowable with restrictions Meetings and Conferences §200.432 Allowable with restrictions Pension Plans §200.431 Allowable with restrictions Rent of Building/Equipment §200.465 Allowable with restrictions Scholarships and Student Aid Costs §200.466 Unallowable Selling and Marketing §200.467 Unallowable Training and Education §200.472 Allowable with restrictions Travel Costs §200.474 Allowable with restrictions In addition, applicants must be aware that:

 AEFLA funds cannot be used to purchase computer hardware and/or software that will be used only partly to serve AEFLA students.

 Childcare costs for children of AEFLA students are only allowable when other sources of funding have been depleted.

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 Food (coffee, juice, donuts, etc.) to entice prospective students, or as an incentive to get or keep them coming after they are enrolled, is not an allowable expenditure.

 AEFLA funds may only be used to supplement and increase the level of funds that would be made available from non-federal sources for the education of participating students. In no case may AEFLA funds supplant funds from non-federal sources.

 AEFLA students may be charged fees but the level of fees must not act as an enrollment deterrent for those who are disadvantaged. All fees collected must benefit the AEFLA program; to provide additional adult education and literacy services that the program would otherwise be unable to provide (AEFLA section 202). Fees cannot be commingled with other funds to purchase non-AEFLA-related items or provide non-AEFLA services.

 AEFLA is NOT a “construction” grant and as such may not be used for building remodels, improvements, etc.

The above list is not meant to be all inclusive. Questions regarding possible unallowable expenses should be directed to the Adult Basic Education Program Manager. In the event that an application for funding contains these or other unallowable items, the applicant will be contacted with the intent to bring the application into compliance.

***Special Notice:

Allowable cost

Pre-Award Costs – §200.458

Pre-award costs are those incurred prior to the effective date of the Federal award directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency.

The Adult Education program is a year-round program which requires all main center sites to provide services throughout the summer. Modified schedules are allowed.

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There is a period of time between when the award letters are sent and when the contracts have final signatures. It is an allowable cost for the instructors and director salaries to accrue during the months of July and August.

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