4.12 General Principles Affecting Allow ability of Costs

4.12.1 General Principles Affecting Allowability of Costs

Effective date: TBD

Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards:¹

• Necessary and Reasonable. Be necessary and reasonable for the performance of the Federal award² and be allocable thereto under these principles.
• Conform to Limitations or Exclusions. Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items.
• Consistent with Recipient Activity. Be consistent with policies, regulations, and procedures that apply uniformly to both federally financed and other activities of DWD-DET.
• Consistent Treatment. Be accorded consistent treatment. A cost may not be assigned to a federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost.
• Consistent with Accepted Accounting Principles. Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part.³
• Conform to Cost Sharing or Matching⁴ Requirements. Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. See also 2 CFR 200.306(b).⁵
• Documented. Be adequately documented. See also 2 CFR 200.300⁶ through 2 CFR 200.309⁷.
• Approved Budget Period. Be incurred during the approved budget period. The Department of Labor (DOL) is authorized, at its discretion, to waive prior written approvals to carry forward unobligated balances⁸ to subsequent budget periods pursuant to 2 CFR 200.308(e)(3)⁹.

• ¹ 2 CFR 200.403
• ² 2 CFR 200.1 “Federal award”
• ³ 2 CFR 200.403
• ⁴ 2 CFR 200.1 “Cost sharing or matching”
• ⁵ 2 CFR 200.306(b)
• ⁶ 2 CFR 200.300
• ⁷ 2 CFR 200.309
• ⁸ 2 CFR 200.1 “Unobligated balance”
• ⁹ 2 CFR 200.308(e)(3)