Grant recipients must ensure that their charges to their federal awards are allowable, as unallowable costs can lead to single audit findings. There are numerous factors to consider when determining if costs are allowable, necessary and reasonable. Developing policies and procedures can assist in avoiding questioned costs that could potentially threaten your federal funding or raise your risk level. When considering cost allowability, there are certain steps that your organization can take, as well as avoid, to ensure your compliance under the award. This whitepaper discusses what you should do, and not do, when considering the allowability of costs.
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