Allowable Cost Definition

Allowable or Not?Allowable or Not?

Presented by: Andre White & Lisa Reichenbacher

Grant Specialists, HMEP Grant Program

Allowable Cost Allowable Cost Definition Definition

As defined by 2 CFR part 225 (2 CFR 200 Dec 2014) Allowable costs are those :

•Necessary and reasonable for proper and efficient performance and administration of Federal awards.

•Be allocable to Federal awards under the provisions of 2 CFR part 225 (2 CFR 200 Dec 2014).

•Be authorized or not prohibited under State or local laws or regulations.

These costs are also program specific.

http://www.law.cornell.edu/cfr/text/2/225

Allowable CostsAllowable CostsA Deeper UnderstandingA Deeper Understanding

Unallowable Costs Unallowable Costs Definition Definition

Unallowable costs are defined as those that fall outside the confines of allowable costs in accordance with 2 CFR part 225 (2 CFR 200 Dec 2014) and the granting agency’s mission and scope.

These cost as are also program specific.

Unallowable CostsUnallowable CostsA Deeper UnderstandingA Deeper Understanding

Where to Begin?Where to Begin?What Steps Can You Take To Determine Cost What Steps Can You Take To Determine Cost

AllowabilityAllowability

• Review the Code of Federal Regulations (CFR) for general allowability concerns

• Network within the HMEP grantee pool

• Utilize the HMEP Activities Guidance

• When in doubt, contact your HMEP grant specialist

Code of Federal Regulations Code of Federal Regulations What Guidance Should You UseWhat Guidance Should You Use

2 CFR Part 225 (2 CFR 200 Dec 2014)2 CFR Part 225 (2 CFR 200 Dec 2014)State and Local Governments and Indian Tribal Governments

49 CFR Sections 18.32-3349 CFR Sections 18.32-33Uniform Administrative Requirements for Grants and

Cooperative Agreements to State and Local Governments49 CFR Section 110. 40 49 CFR Section 110. 40

Hazardous Materials Public Sector Training and Planning Grants Activities Eligible for Funding

Networking Networking Reach Out And Touch SomeoneReach Out And Touch Someone

Many grantees of the HMEP grant program have established working relationships across the U.S.

They share information such as best practices and processes to increase effectiveness and efficiency.

Note:

What may be conditionally allowable for one jurisdiction may not be for another.

HMEP Grant Activities Guide HMEP Grant Activities Guide A Living Document A Living Document

The HMEP Activities Guide is a living document. In addition to the activities found in 49 CFR section 110. 40, the HMEP grant program office establishes what supply and equipment items and activities are allowable.

As new submissions are presented and evaluated for cost allowability, the HMEP grant program will amend the guide.

Contacting Your Grant SpecialistContacting Your Grant SpecialistWe’re the Government, We’re Here to HelpWe’re the Government, We’re Here to Help

Each HMEP grant specialist can assist you with any cost allowability questions. You may email your query or call 202-366-1109 .

What’s the Process?What’s the Process?What Actually Happens When An Activity Is What Actually Happens When An Activity Is

Submitted For ApprovalSubmitted For Approval

1. Each submission must first have an official record. The official record is made via the HMEP Activities Request Portal.*

2. When the HMEP grant specialist receives the record, it undergoes a cost allowability analysis. The request is deemed allowable or unallowable at this point.

3. The results of the cost allowability analysis is communicated to the grantee.

HMEP Activities Request Portal: https://hazmatgrants.phmsa.dot.gov/activity_request.asp

The Rules: The Rules: For each illustration shown

select either

Allowable, Conditionally Allowable or Unallowable

And explain why.

READY!!!!READY!!!!

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Allowable or Unallowable? Allowable or Unallowable?

UnallowableUnallowable

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Allowable or Unallowable? Allowable or Unallowable? Real World ExamplesReal World Examples

All-Terrain Vehicles(ATVs)All-Terrain Vehicles(ATVs)

Conditionally Allowable Conditionally Allowable

A flammable liquid spill that is not on fire, the first responder must be able to use foam and foam equipment to suppress the vapors so the liquid spill cannot ignite. Not all HAZMAT incidents that occur in transportation

are easily accessible and the first responders must be trained in how to use the ATV’s while carrying foam.

When would this be used?When would this be used?

Allowable Allowable


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iPads, due to their cost per item, would be categorized as a supply item.

If this is an item that was not approved in the application, an activity request must be submitted. Then, this must be tied to a

specific HMEP Related Activity.

When would this be used? How many?When would this be used? How many?

Conditionally AllowableConditionally AllowableiPadsiPads

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Conditionally AllowableConditionally Allowable

Allowable when:Allowable when:•Working lunch

•Hydration for activities

Unallowable when:Unallowable when:•Excessive

•For entertainment purposes

Unallowable Unallowable


WMD Training WMD Training

AllowableAllowable


Rail Car Training PropRail Car Training Prop





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LEPC Meeting ExpensesLEPC Meeting Expenses

Conditionally AllowableConditionally Allowable

Allowable when:Allowable when:•Related specifically to HMEP

Unallowable when:Unallowable when:•Meeting is general, and HMEP is not a topic

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Grants Management TrainingGrants Management Training

AllowableAllowable

Teamwork Gets the Job DoneTeamwork Gets the Job Done

The HMEP grant program continues to grow and reach new heights.

Your continued support and participation are instrumental.

Together we can hammer the nail to smooth the surface.

Questions? Questions?

Documents

Allowable Cost Definition