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Unallowable Costs


Federal awards generally supply you and your subrecipients with the funds necessary to cover costs associated with the award program. There are other costs, however, categorized as unallowable costs, that will not be reimbursed. To manage unallowable costs, separate accounts must be established for these types of expenses. Also within the category of unallowable costs are any costs considered inappropriate by your awarding agency.

Standard unallowable costs are identified in the following Code of Federal Regulations (CFR) sections: