Guidelines — Cost Principles for MAES Federal Appropriations
Here is a handy summary of what costs are and are not allowed in reporting against your MAES research project. For further information, OMB Circular A-21 (Section J) http://www.whitehouse.gov/omb/circulars/a021/a021.html documents the principles determining appropriate charges to the MAES federal appropriations (Hatch, Multi State Research, McIntire Stennis and Animal Health funds.) There are also some fund specific regulations that are listed in the Administrative Manuals for each of these funds. Links to PDF copies of those manuals can be found at the end of this summary.
Summary of Unallowed Costs
Advertising (except for recruitment of personnel for the research project, procurement of goods or services related to the project, and disposition of surplus/scrap federal property)
Alcoholic beverages
Alumni activities
Bad debts arising from uncollectible accounts, related collection costs, and related legal costs
Commencement and convocation costs
Community relations (except costs of communicating with the public & press pertaining to specific activities or accomplishments which result from the project)
Contingency reserves
Contributions and donations to others
Costs above the amount authorized for the project
Costs: Timing constraints
• incurred prior to the 90-day period immediately preceding the effective date of the project
• incurred after the expiration of the awardDefense and prosecution of criminal and civil proceedings costs, including penalties, are normally unallowable
Direct cost transfers from sponsored accounts
Entertainment costs regardless of their apparent relationship to the project
Fines and penalties resulting from violations of federal, state, local, or foreign laws
Fund raising, including financial campaigns, endowment drives, solicitations of gifts and bequests, and similar expenses incurred solely to raise capital or obtain contributions
Goods and services for personal use by employees
Housing allowances and personal living expenses for current and past employees
Indirect costs such as capitol improvements, depreciation or interest on debt
Lobbying costs
Membership costs in a civic or community organization, country club, or social or dining club/organizations
Retirement—employer contributions to Land-Grant college retirement systems are limited to 5%
Scholarships and student aid costs
Selling and marketing costs of any products sold by the University
Student organization costs such as intramural activities, student publications, student clubs, operation of the student union and the like
Tuition remission costs
Summary of Allowable Costs
Allowable direct costs include salaries and related fringe benefits, materials and supplies (including those purchased from University storerooms), equipment, travel, services (including those from University service facilities), consultants, subcontracts. All costs must be associated directly with a given research project and represent effort on that research project.
General purpose equipment, use of which is not limited to research such as office equipment and furnishings, air conditioning equipment, reproduction and printing equipment, automated data processing equipment, and motor vehicles. However, this equipment must be primarily used in the actual conduct of the project.
General/administrative expenses (for example, administrators, managers, accountants, account technicians, proposal costs, etc.) are allowable under Hatch and McIntire-Stennis fund rules but cannot be charged directly to a research project. They should be charged to the “Administrative” account. These charges are prorated over the active research projects when the fiscal year expenditures are reported to CSREES. “General/Administrative” costs are not allowed on Multi-state Research funds.
Costs cannot be shared between Hatch and McIntire-Stennis funds on the same research project.
For further information:
Hatch funds: http://www.csrees.usda.gov/business/awards/formula/hatch.html
McIntire Stennis funds: http://www.csrees.usda.gov/business/awards/formula/mcintire_stennis.html
Animal Health funds: http://www.csrees.usda.gov/business/awards/formula/animalhealth.html