Allowable, Reasonable, Allocable Cost Principles
To be allowable under a Federal award, costs will meet the following criteria:
A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a reasonable person under the prevailing circumstances. In determining reasonableness of a specific cost, consideration must be given to:
A cost is allocable to a particular Federal award if the goods or services involved are chargeable or assignable to the Federal award in accordance with the benefits received. This standard is met if the cost:
At the time of budgeting for a Federal award, all costs, direct and indirect, will be reviewed by the District’s Federal Grant administrator to assure compliance with Federal allowability principles.
Documentation of Personnel Costs
Semi-Annual Certification – Where employees are expected to work solely on a single Federal award or cost objection, charges for their salaries and wages will be supported by periodic certifications that the employees worked solely on that program for the certification period.
Monthly Personnel Reports
Where District employees work on multiple activities or cost objectives, a distribution of their salary and wages will be supported by personnel activity reports. Similar procedure will be used for District employees working on cost sharing or matching activities.
If the District elects to work under a substitute system for time and effort, the District will seek approval by DESE.
Stipends and Extra Duty Pay
Where the District pays for extra work beyond an employee’s regular contract, the District will have developed written documentation that demonstrates the extra work to be performed; the dates of performance; and the amount or rate to be paid to such employee. A contract will also be signed by the District and the employee to show acceptance of the terms. In addition, the employee must complete time and effort documentation that supports the extra work beyond the employee’s regular contract. This documentation may be a semi-annual time certification or monthly personnel activity report.