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3.9 Allowable Costs

Other Allowable Costs

  • You can expense costs associated with software development in the period when you incur it, subject to the limits outlined in the budget and budget narrative.
  • You may not use an accelerated method to calculate depreciation.
  • Post-employment benefits are allowable costs if funded in accordance with actuarial requirements. The funds must be paid within 6 months of accrual.
  • You may be prohibited from drawing down information technology award funds until the State Information Technology Point of Contact has received written notification of the project and a Grant Adjustment Notice has been issued by the awarding agency (see Chapter 2.2: Conditions of Award and Acceptance).
  • In accordance with Title 2 CFR Part 225 (see Introduction in this chapter) costs of contingency fee contracts incurred by State and local governments for recovery of erroneous and improper payments charged against Federal programs are allowable costs.
  • State and local governments may use a portion of the recovered erroneous or fraudulent payments from Federal programs to pay for recovery contracts.
  • You should claim the portion used to pay for such contingency fees as administrative costs.