What’s allowable and unallowable?

An allowable cost is a cost that can be charged or assigned to a sponsored program. The University of Texas at Dallas follows the following guideline, Allowable Cost on Federally funded Contracts and Grants, which outlines the allowable costs for grants, contracts, and sub‐awards. This guideline follows cost accounting standards as prescribed in OMB 2 CFR Part 220 (Uniform Guidance) and The University of Texas at Dallas Expenditure of Funds policy – UTDBP3097.

These are the basic criteria to determine direct costs on federally sponsored projects. Regardless of the funding agency, costs for sponsored programs are based on answering the following questions:

Are costs allocable, allowable, consistent, and reasonable in like circumstances, allowed by UTD policy, sponsor policy, federal and state polices?

Related Policies and Guidance

Allowable Cost on federally funded Contracts and Grants

The University of Texas at Dallas Expenditure Policy (UTDBP3097)

OMB Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance)

OMB 2 CFR Part 220

The Cost Accounting Standards (CAS)

The Office of Sponsored Programs