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Federal Transit Administration
Financial Management Oversight Seminar 2005

Page 55 - Common Rule - Allowable Cost

18.20(b)(5) Allowable Cost. Grantees must have procedures to provide reasonable assurance that OMB cost principles, Circular A-87( incorporated within 49 CFR 18.22), agency program regulations, and the terms of grant and subgrant agreements will be followed in determining the reasonableness, allowability, and allocability of costs." If indirect costs are being charged to the grant, Grantees must prepare a cost allocation plan that is approved by its cognizant agency.

Condition: Force Account Plan and Fringe Benefit Rate not documented or approved.

Condition: Grantee reported amounts of federal funding in excess of eligible expenditures.


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2005 - Federal Transit Administration