Policy 7320P2 - Selected Items of Cost

­­­RISE CHARTER SCHOOL

­­­DISTRICT #562

FINANCIAL MANAGEMENT                                                                                          7320P2

Selected Items of Cost

2 CFR Part 200 examines the allowability of 55 specific cost items (commonly referred to as Selected Items of Cost). These cost items are listed in the chart below along with the rule where the allowabiliy of the item is discussed. Please do not assume that an item is allowable because it is specifically listed in the regulation, as it may be unallowable despite its inclusion in the selected items of cost section. The expenditure may be unallowable for a number of reasons, including:

  1. The express language of the regulation states the item is unallowable;
  2. The terms and conditions of the grant deem the item unallowable; or
  3. State/local restrictions dictate that the item is unallowable.

The item may also be unallowable because it does not meet one of the cost principles, such as being reasonable because it is considered too expensive. If an item is unallowable for any of these reasons, federal funds cannot be used to purchase it.

RISE Charter School personnel responsible for spending federal grant funds and for determining allowability shall be familiar with the Part 200 selected items of cost section. The Executive Director or designee and Business Manager shall follow these rules when charging these specific expenditures to a federal grant. When applicable, the Executive Director or designee and/or Business Manager shall check costs against the selected items of cost requirements to ensure the cost is allowable. In addition, State, RISE Charter School, and program-specific rules may deem a cost unallowable, and RISE Charter School personnel shall follow those non-federal rules as well.

The selected item of cost addressed in Part 200 includes the following (in alphabetical order):

Item of CostCitation of Allowability Rule
Advertising and public relations costs2 CFR § 200.421
Advisory councils2 CFR § 200.422
Alcoholic beverages2 CFR § 200.423
Alumni/ae activities2 CFR § 200.424
Audit services2 CFR § 200.425
Bad debts2 CFR § 200.426
Bonding costs2 CFR § 200.427
Collection of improper payments2 CFR § 200.428
Commencement and convocation costs2 CFR § 200.429
Compensation – personal services2 CFR § 200.430
Compensation – fringe benefits2 CFR § 200.431
Conferences2 CFR § 200.432
Contingency provisions2 CFR § 200.433
Contributions and donations2 CFR § 200.434
Defense and prosecution of criminal and civil proceedings, claims, appeals, and patent infringements2 CFR § 200.435
Depreciation2 CFR § 200.436
Employee health and welfare costs2 CFR § 200.437
Entertainment costs2 CFR § 200.438
Equipment and other capital expenditures2 CFR § 200.439
Exchange rates2 CFR § 200.440
Fines, penalties, damages, and other settlements2 CFR § 200.441
Fund raising and investment management costs2 CFR § 200.442
Gains and losses on disposition of depreciable assets2 CFR § 200.443
General costs of government2 CFR § 200.444
Goods and services for personal use2 CFR § 200.445
Idle facilities and idle capacity2 CFR § 200.446
Insurance and indemnification2 CFR § 200.447
Intellectual property2 CFR § 200.448
Interest2 CFR § 200.449
Lobbying2 CFR § 200.450
Losses on other awards or contracts2 CFR § 200.451
Maintenance and repair costs2 CFR § 200.452
Materials and supplies costs, including costs of computing devices2 CFR § 200.453
Memberships, subscriptions, and professional activity costs2 CFR § 200.454
Organization costs2 CFR § 200.455
Participant support costs2 CFR § 200.456
Plant and security costs2 CFR § 200.457
Pre-award costs2 CFR § 200.458
Professional services costs2 CFR § 200.459
Proposal costs2 CFR § 200.460
Publication and printing costs2 CFR § 200.461
Rearrangement and reconversion costs2 CFR § 200.462
Recruiting costs2 CFR § 200.463
Relocation costs of employees2 CFR § 200.464
Rental costs of real property and equipment2 CFR § 200.465
Scholarships and student aid costs2 CFR § 200.466
Selling and marketing costs2 CFR § 200.467
Specialized service facilities2 CFR § 200.468
Student activity costs2 CFR § 200.469
Taxes (including Value Added Tax)2 CFR § 200.470
Termination costs2 CFR § 200.471
Training and education costs2 CFR § 200.472
Transportation costs2 CFR § 200.473
Travel costs2 CFR § 200.474
Board Members2 CFR § 200.475

Likewise, it is possible for the State and/or RISE Charter School to put additional requirements on a specific item of cost. Under such circumstances, the stricter requirements must be met for a cost to be allowable. Accordingly, RISE Charter School staff shall consult federal, State, and RISE Charter School requirements when spending federal funds.

In order for a cost to be allowable, the expenditure must also be allowable under the applicable program statute and accompanying program regulations, non-regulatory guidance, and grant award notifications.

 

Procedure History:

Promulgated on: December 13, 2021

Revised on:

Reviewed on