School District
#261
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Jerome Jt. School District #261
Policy Group
7000 Financial Management
Jerome Joint School District No. 261
FINANCIAL MANAGEMENT 7320P2
Allowable Uses for Grant Funds - Selected Items of Cost
2 CFR Part 200 examines the allowability of 55 specific cost items (commonly referred to as Selected Items of Cost). These cost items are listed in the chart below along with the rule where the allowability of the item is discussed. Please do not assume that an item is allowable because it is specifically listed in the regulation, as it may be unallowable despite its inclusion in the selected items of cost section. The expenditure may be unallowable for a number of reasons, including:
The express language of the regulation states the item is unallowable;
The terms and conditions of the grant deem the item unallowable; or
State/local restrictions dictate that the item is unallowable.
The item may also be unallowable because it does not meet one of the cost principles, such as being reasonable because it is considered too expensive. If an item is unallowable for any of these reasons, federal funds cannot be used to purchase it.
District personnel responsible for spending federal grant funds and for determining allowability shall be familiar with the Part 200 selected items of cost section. The Superintendent and Business Manager shall follow these rules when charging these specific expenditures to a federal grant. When applicable, the Superintendent and/or Business Manager shall check costs against the selected items of cost requirements to ensure the cost is allowable. In addition, State, District and program-specific rules may deem a cost unallowable, and District personnel shall follow those non-federal rules as well.
The selected item of cost addressed in Part 200 includes the following (in alphabetical order):
Item of Cost | Citation of Allowability Rule |
Advertising and public relations costs | 2 CFR § 200.421 |
Advisory councils | 2 CFR § 200.422 |
Alcoholic beverages | 2 CFR § 200.423 |
Alumni/ae activities | 2 CFR § 200.424 |
Audit services | 2 CFR § 200.425 |
Bad debts | 2 CFR § 200.426 |
Bonding costs | 2 CFR § 200.427 |
Collection of improper payments | 2 CFR § 200.428 |
Commencement and convocation costs | 2 CFR § 200.429 |
Compensation – personal services | 2 CFR § 200.430 |
Compensation – fringe benefits | 2 CFR § 200.431 |
Conferences | 2 CFR § 200.432 |
Contingency provisions | 2 CFR § 200.433 |
Contributions and donations | 2 CFR § 200.434 |
Defense and prosecution of criminal and civil proceedings, claims, appeals, and patent infringements | 2 CFR § 200.435 |
Depreciation | 2 CFR § 200.436 |
Employee health and welfare costs | 2 CFR § 200.437 |
Entertainment costs | 2 CFR § 200.438 |
Equipment and other capital expenditures | 2 CFR § 200.439 |
Exchange rates | 2 CFR § 200.440 |
Fines, penalties, damages, and other settlements | 2 CFR § 200.441 |
Fund raising and investment management costs | 2 CFR § 200.442 |
Gains and losses on disposition of depreciable assets | 2 CFR § 200.443 |
General costs of government | 2 CFR § 200.444 |
Goods and services for personal use | 2 CFR § 200.445 |
Idle facilities and idle capacity | 2 CFR § 200.446 |
Insurance and indemnification | 2 CFR § 200.447 |
Intellectual property | 2 CFR § 200.448 |
Interest | 2 CFR § 200.449 |
Lobbying | 2 CFR § 200.450 |
Losses on other awards or contracts | 2 CFR § 200.451 |
Maintenance and repair costs | 2 CFR § 200.452 |
Materials and supplies costs, including costs of computing devices | 2 CFR § 200.453 |
Memberships, subscriptions, and professional activity costs | 2 CFR § 200.454 |
Organization costs | 2 CFR § 200.455 |
Participant support costs* *The Board directs the Superintendent to adopt procedures indicating which costs shall be classified as participant support costs. Such classification shall be applied consistently across all federal awards. | 2 CFR § 200.456 |
Plant and security costs | 2 CFR § 200.457 |
Pre-award costs | 2 CFR § 200.458 |
Professional services costs | 2 CFR § 200.459 |
Proposal costs | 2 CFR § 200.460 |
Publication and printing costs | 2 CFR § 200.461 |
Rearrangement and reconversion costs | 2 CFR § 200.462 |
Recruiting costs | 2 CFR § 200.463 |
Relocation costs of employees | 2 CFR § 200.464 |
Rental costs of real property and equipment | 2 CFR § 200.465 |
Scholarships and student aid costs | 2 CFR § 200.466 |
Selling and marketing costs | 2 CFR § 200.467 |
Specialized service facilities | 2 CFR § 200.468 |
Student activity costs | 2 CFR § 200.469 |
Taxes (including Value Added Tax) | 2 CFR § 200.470 |
Telecommunication and video surveillance costs | 2 CFR § 200.471 |
Termination costs | 2 CFR § 200.472 |
Training and education costs | 2 CFR § 200.473 |
Transportation costs | 2 CFR § 200.474 |
Travel costs | 2 CFR § 200.475 |
Trustees | 2 CFR § 200.476 |
Likewise, it is possible for the State and/or District to put additional requirements on a specific item of cost. Under such circumstances, the stricter requirements must be met for a cost to be allowable. Accordingly, District staff shall consult federal, State, and District requirements when spending federal funds.
In order for a cost to be allowable, the expenditure must also be allowable under the applicable program statute and accompanying program regulations, non-regulatory guidance, and grant award notifications.
Legal Reference Description
2 CFR §§ 200 et seq. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Funds.
2 CFR §§ 200 (Subparts E and F) Cost Principles and Audit Requirements
2 C.F.R. §200.404 Reasonable Costs
2 C.F.R. §200.405 Allocable Costs
2 C.F.R. §200.406 Applicable Credits
2 C.F.R. §§ 200.420-200.475 Considerations for Selected Items of Cost
Cross References Description
7236 Employees Paid with Federal Funds and Unexpected or Extraordinary Closures
7400 Miscellaneous Procurement Standards
7400P1 Miscellaneous Procurement Standards - Federal Award Requirements
7400P2 Miscellaneous Procurement Standards - Procurement Methods Under a Federal Award
7400P3 Miscellaneous Procurement Standards - Requirements and Restrictions for Procurement Under Federal Award - Completion
7400P4 Miscellaneous Procurement Standards - General Procurement Standards for Federal Award
Policy History:
Adopted on: 05/26/2026