Expense Guidelines

Before an expense can be charged to a grant's direct costs budget, the expense

• Must be allowable (i.e., certain costs, such as entertainment, may not be charged to a Federal grant under any circumstances).

  Costs normally included in the institution's research F&A cost rate CANNOT be direct charged to a Federal grant, e.g. administrative staff or office supplies. Visit the FOA web site to view the HMS Sponsored Expenditure Policy for exceptions and full policy.

• Must be allocable and specifically identified with a particular project (i.e., costs must be charged in proportion to their benefit to a particular project).
• Must be reasonable (i.e., charging costs to a particular project must be conservative and reflect the actions of a "prudent person").
• Must be timely, e.g., cost transfers should occur as soon as an error is discovered but no later than 90 days after original charge was incurred.
• Must conform to any Limitations or Exclusions in the Sponsored Agreement.