Allowable Costs Guide
This is not an exhaustive list of allowable and unallowable costs. All references are taken from the Uniform Guidance provided by the Office of Management and Budget’s CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Grants and the BCYF Grant Agreement.
Type of Cost | ✔ Allowable Cost | X Unallowable Cost |
|---|---|---|
Salaries and Wage Benefits | Salaries and wages of personnel who directly contribute to the program’s purpose. All current employee salary (including sick, personal time off or holiday time) should be included in the monthly report under personnel expense. If an employee departure occurs, accrued time off pay out or severance must be separated from the personnel line and included under Fringe Benefits along with the applicable allocation percentage applied equally to both salary and fringe. If this payout exceeds $1,000, prior approval from the BCYF Compliance team must be sought before adding the expense into the monthly reporting. | Salaries and wages of personnel who are NOT supporting youth, young adults and/or children inside of Baltimore City. Example: program staff serving senior citizens, regardless of location, or youth in Baltimore County. |
Fringe Benefits | Fringe benefits of personnel who directly contribute to the program’s purpose. Allowable costs are as follows:
| Recipients are unsubscribed to expenses being claimed (i.e., dental/health insurance) Personal payments or non-employee sponsored plans are not allowable. Examples:
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Out-of-State Travel Costs | Allowable for reasonable transportation and lodging for employees and program participants whose travel is directly related to the program. Example: Paying for a hotel for an employee who serves as a chaperone for an overnight college tour trip with program participants. International travel is also permitted and allowable as long as the travel is directly related to the program. International travel must receive prior approval from BCYF. | Unallowable when travel costs are unreasonable. Examples:
Please refer to the GSA provided Per Diem Rates for guidelines on how much to spend for hotels, food, etc. |
Training and Education Costs | Allowable for training provided for employee development associated with the sponsored program. Example: first aid training for youth development staff | Training for staff NOT serving the sponsored program or that may be unreasonable for the sponsored program. Example: paying for staff to attend a yoga retreat in India, even if you have a yoga program for youth |
Rental Costs of Buildings and Equipment | Allowable for reasonable costs when incurred specifically for the sponsored program. Grantees may not personally benefit from rental agreements. Example: paying rent for the space specifically used to host the program | Unallowable costs include:
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Utilities | Allowable ONLY for utility costs directly related to rental/lease space agreements for the program. Should NEVER be used for personal benefit. | No portion of personal housing or living expenses may be charged to the grant. Examples:
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Printing and Copying | Allowable for distribution of program-related print materials distributed to program participants. | Purchase of reproduction and printing equipment is unallowable. See equipment and other capital expenditures. |
Communications | This cost is allowable for programmatic use ONLY. Communication support must be in the business name. Examples are:
| Not for general purpose/personal use. |
Participant Expenses | Allowable when specific costs that may otherwise be considered entertainment have a programmatic purpose. Examples:
| Costs of entertainment, including amusement, diversion, and social activities and any associated costs are unallowable. Examples: Hiring a marching band to announce the start of the program |
Transportation/ Freight Costs | Allowable when related to goods purchased, in process, or delivered that are directly related to the program. Example: Rental vehicle directly associated with a field trip | Unallowable for routine/general costs or personal use. Example:
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Materials and Supplies | Allowable when necessary and used for the performance of the sponsored program. Examples:
| Unallowable for any personal use unrelated to programming. Costs should be directly related to the program and make sense according to the submitted narrative for the program. |
Equipment and other capital expenditures | Allowable only for special purpose equipment that is used ONLY for programming and NEVER used for personal benefit at any time. Examples:
***Prior approval is required from BCYF for items with a unit cost of $1,000 or more. *** | Unallowable for General Purpose Equipment and items that may be used for personal benefit. Examples:
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Consultant/ Contractors | Allowable costs for vendors/contractors paid to provide a service that is directly related to the program. | Unallowable for services provided outside of the submitted narrative of the program. |
Project Partner/Fiscal Sponsor Fees | Allowable for Fiscal Sponsor costs ONLY If you have a fiscal sponsor, this should always be included in your Annual Award Budget. | Unallowable for all other costs other than Fiscal Sponsor fee |
Marketing & Advertising | Allowable ONLY if related to and necessary for the performance of the sponsored program. Examples:
| Unallowable for advertising related to promoting the general image of BCYF. Unallowable for promotional items, including gifts. Examples:
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Stipends | Stipends should be directly related to the program and recorded as such, with the following detail:
Paying in cash, cash app or gift cards is not recommended but may be acceptable with the documentation noted above. For cash payments, please refer to this guidance to ensure you have the appropriate documentation. | Stipends should not be given as gifts or incentives. Unallowable for general purposes that would personally benefit the participant. |
Administrative/ Indirect Costs | Indirect (G&A) costs are costs incurred for a common or joint purpose that benefits more than one cost objective. Indirect expenses should be grouped into different cost pools with a proposed indirect rate. An indirect rate proposal must be documented and prepared by the grantee when establishing an indirect cost. Only allowable for organizations with an annual budget of $750k or more. | Admin/Indirect total costs should not exceed 15% of the grant award. |
OTHER | ||
Conferences hosted by grantees | Allowable when the primary purpose is directly related to the program. Examples:
| Unallowable for entertainment purposes. Examples:
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Contributions and Donations | None | No contributions or donations given to other entities are allowable. Examples:
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Fines, Penalties, Damages or Legal fees/settlements | None | Paying fines, penalties, damages and settlements are not allowed. Examples:
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Goods & Services for Personal Use | None | Goods and Services for Personal Use are not allowed. Examples:
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Housing & Personal Living Expenses | None | No portion of personal housing or personal living expenses may be charged to the grant. Examples:
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Insurance & Indemnification | Allowable if it meets requirements of the BCYF grant agreement | Unallowable for insurances not listed within signed contract agreement. Examples:
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Maintenance & Repair Costs | Allowable as direct cost only if necessary, to carry out the technical and scientific aspects of and used for the performance of the program. Examples:
| Unallowable costs for: Examples:
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Memberships, Subscriptions, & Professional Activity Costs | Allowable when directly related to programming or capacity-building, i.e. for the betterment of the grantee and/or its program. Prior approval by BCYF must be documented. Example:
| Unallowable when membership is for personal gain. Examples:
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Fundraising Costs | Fundraising costs for the purposes of applying to BCYF grant opportunities are allowable with prior written approval from BCYF. Allowable fundraising must be allocated as an appropriate share of indirect costs. | Costs of organized fundraising, including financial campaigns, endowment drives, solicitation of gifts and bequests, and similar expenses incurred to raise capital or obtain contributions are unallowable. Examples of Fundraising costs:
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Miscellaneous | This is a part of the “other expense” category in the program budget. These expenses are approved on a case-by-case basis dependent upon the need of the grantee and the justification provided. | This is a catch-all category of expenses that are unallowable. These are examples we have seen in financial expense reports that were rejected. The list includes, but is not limited to, the following:
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