Allocable Costs

Definition of Allocable Expanded from “Solely” to “Specifically”  

Section 200.405 language in the guidance changed from “incurred solely for the Federal award” to “incurred specifically for the Federal award”.  Federal funds cannot be used to overcome deficiencies or reasons other than those specified at the time of the award.  If an incurred cost benefits two or more projects, the cost should be allocated proportionately; costs for equipment purchased under an award are allocable regardless of the use of the equipment when it is no longer needed. 

Impact at the University of Maryland:

  •   UMBC will carefully analyze fair and appropriate direct cost allocation methodologies.