Discover the difference between allowable and unallowable costs under the Uniform Guidance. Learn compliance tips and see how training, courses, and webinars can help your team manage federal grant spending.
When managing federal grants, one of the most common—and most important—questions is: Can we charge this cost to the grant?
The Uniform Guidance (2 CFR Part 200, Subpart E) sets the rules for determining which costs are allowable (reimbursable) and which are unallowable (must be paid with non-federal funds).
This topic is central to every grant management course and training program, because mistakes here can mean paybacks, audit findings, or even loss of funding.
For a cost to be allowable, it must be:
- Reasonable – not excessive for the purpose.
- Necessary – essential to the project.
- Allocable – directly tied to the grant’s objectives.
These standards are emphasized in grant compliance webinars because they form the foundation of cost allowability.
- Salaries and wages tied to project work
- Travel costs necessary for the grant
- Supplies and equipment essential to the project
- Alcoholic beverages (for entertainment purposes)
- Entertainment
- Lobbying costs
- Fines or penalties
Because cost allowability often involves grey areas, training is essential, as well as codifying these requirements in your policies and procedures. Attending grant management webinars or instructor-led courses gives your team practical case studies, real-world examples, and the chance to ask questions. Combined with strong internal documentation, this reduces risk and strengthens compliance.
Understanding cost principles is essential for grant compliance. By training your staff and reinforcing internal controls, you’ll protect your organization from costly mistakes.
Whether through self-paced courses or live grant management boot camps, learning how to distinguish allowable vs. unallowable costs is one of the smartest investments your organization can make.
Want more clarity on allowable vs. unallowable costs? Our
grant management courses and live webinars dive deeper into Uniform Guidance cost principles, giving your team the confidence to make sound spending decisions. Check out our upcoming training opportunities to learn more.
