Download Allowable and Not Allowable Expenses

Wisconsin Partnership Program
Policy on Allowable and Unallowable Grant Expenses
BACKGROUND
The Wisconsin Partnership Program (WPP) has specific policies on allowable and unallowable expenses for
programs and projects it funds. WPP staff review all proposed expenditures and discuss any questions or
concerns with the applicant or grantee.
DEFINITIONS
Allowable Costs: The WPP allows expenses directly incurred by the grantee as outlined in the budget of the
approved application. All project budgets must successfully pass a technical review by WPP financial staff. The
grantee must be able to specifically identify project expenses associated with the WPP grant award.
Unallowable Costs: The non-supplanting stipulation requires that all reimbursable expenses be directly
attributable to the grant and that WPP funds cannot replace other funding the grantee organization is receiving.
Examples include:
 overhead
 pre-award costs
 alcoholic beverages
 proposal costs
 entertainment
 donations
 fines
 any expenses for goods and services for
personal use of employees
 lobbying
Because of non-supplanting requirements, the WPP does not allow indirect costs, such as overhead or
administrative costs. The WPP requires that grantees have existing infrastructure in place to provide indirect
support for the grant agreement. Grantees must indicate their capacity to oversee and manage the project,
programmatically and financially, before any funding decisions are made. Overhead is not an allowable expense,
even if an existing cost allocation model exists. Expenses for existing clerical and administrative staff such as
book keepers or accountants are considered an indirect cost unless a new position has been created for the sole
purpose of managing the WPP grant.
POLICY
ALLOWABLE COSTS
Expense Item
Advertising
Audit
Books, Journals and
Subscriptions
Revised 2/10/2016
Allowable
Advertising for personnel recruitment,
purchase of goods or sale of surplus
materials is allowable if specifically related
to the project, such as recruitment of
dedicated personnel.
Grant funds may be used to support a
program specific audit in the absence of a
routine organizational audit.
Books, journals and subscriptions to
professional and technical publications are
allowable if specifically related to the
project.
Unallowable (Indirect)
A review of financial controls by an
external audit firm is considered a
broader organizational expense
that cannot be specifically
attributed to the WPP project and
is not allowable.
Wisconsin Partnership Program Policy on Allowable and Unallowable Grant Expenses
Expense Item
Consultant
Equipment
Allowable
Consultant services – an individual or firm
hired to perform professional, short-term
services – are allowable if specifically
related to the project.
Equipment is tangible personal
property with a useful life of more
than two years and a unit cost greater
than or equal to $5,000.
Unallowable (Indirect)
Special purpose equipment – scientific
equipment used only for technical
activities –is allowable as a direct cost
if specifically related to the project.
General purpose equipment –
computers, office equipment, and
furnishings, which are not limited to
research or technical use would be
allowable if directly used for the grant.
Fundraising
Honoraria
Meals and Meeting
Refreshments
Memberships and Dues
Office Supplies
Revised 1/10/2017
With prior approval by the WPP,
development activities are allowable so
long as they are related to the grant,
outlined in the project work plan and
contribute to sustainability of the goals of
the project.
Honoraria, such as a speaker’s fee, are
allowable if specifically related to the
project with approval by the Wisconsin
Partnership Program.
Meeting refreshments, site visit meals and
guest meals are allowable if specifically
related to the project. Meals associated
with staff travel, conference or symposia
are allowable but are subject to limitations
established by the organization.
Only memberships and dues specifically
related to the project are allowable with
approval by the Wisconsin Partnership
Program.
Office supplies – those items usually
maintained in a departmental stock for
general use by all staff, including pens,
pencils, writing paper, file folders,
departmental letterhead, envelopes,
staples, staplers and rulers – are allowable
if specifically related to the project.
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Recreational activities, either for
entertainment or team-building,
are not allowable.
A general allocation of office
expenses would be considered
indirect cost and not allowable.
Wisconsin Partnership Program Policy on Allowable and Unallowable Grant Expenses
Expense Item
Participant Support Costs
Patient Care Supports
Personal Computers
Postage/Messenger Service
Professional Services
Public Relations and
Marketing
Recharge Center Cost
Rent
Revised 1/10/2017
Allowable
Participant support costs (PSC) are small
payments to individuals who participate
occasionally in research, education, or
community-based programs. This may
include stipends paid to, or on behalf of,
participants or trainees (but not
employees) in connection with official
meetings, conferences, or symposia,
training or research projects. These costs
are allowable with WPP prior approval and
in accordance with the PSC Guidelines.
Payments may be in the form of gift cards
or other non-cash items or incentives.
Cash may not be used. A $50 incentive
limit per occurrence applies for nonresearch related participation.
Clinical services that involve screening and
education, or mobilizing resources to
promote healthcare access are allowable.
The purchase of personal computers is
allowable if specifically related to the
project.
Postage – routine postage costs –is
allowable and shipping of materials,
receiving goods for project use or other
delivery of items are allowable if directly
related to the project.
Individuals or companies hired to perform
professional, short-term services, such as
accounting or legal services, are allowable
if specifically related to the project.
Public relations and marketing costs are
allowable if specifically related to the
project.
The operating costs of a unit (photocopy
service, stockroom) that provides routine
goods and services within an organization
are allowable if specifically related to the
project.
Rental costs – cost to lease building space
or equipment – are allowable if specifically
related to the project and they represent a
new cost solely attributable to the project.
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Unallowable (Indirect)
Patient care with the sole purpose
of providing clinical services related
to treatment or follow-up for
specific health conditions is not
allowable.
General costs, such as corporate
legal or accounting services, are
generally indirect costs and not
allowable.
General rental costs such as
allocation of preexisting office
space is indirect cost and not
allowable.
Wisconsin Partnership Program Policy on Allowable and Unallowable Grant Expenses
Expense Item
Salaries and Fringe Benefits:
Administrative and Clerical
Personnel
Allowable
Such expenses are allowable only if
specifically related to the project and
represent a new cost incurred.
Salaries and Fringe Benefits:
Technical and
Programmatic Personnel
Salaries and fringe benefits for technical
and programmatic personnel staff –
personnel performing scientific or other
technical work related to a project – are
allowable if specifically related to the
project.
The purchase of computer software is
allowable if related to the project.
Operating units that use specialized
equipment or technical expertise to
provide goods or services for a fee are
allowable if specifically related to the
project.
Costs of student publications and activities
are allowable if specifically related to the
project.
Equipment and service costs for local
telephone, fax service and pagers are
allowable if specifically related to the
project.
Costs incurred due to early termination of
a project agreement are allowable so long
as effort is made to minimize those costs
by canceling contracts and reselling
surplus goods.
Travel – transportation, lodging,
subsistence and related costs for official
business, in accordance with
organizational policy – is allowable if
specifically related to the project.
UW graduate students under the direction
of a Principal Investigator who are directly
working on the project and being funded
by the project may incur tuition remission
charges, which are allowable.
Software
Specialized Service Facilities
or Service Center
Student Publication and
Activity Costs
Telephone, Fax Lines and
Pagers
Termination Costs
Travel
Tuition
Revised 1/10/2017
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Unallowable (Indirect)
Salaries and fringe benefits of
general corporate or organizational
support staff – departmental
administration, including
professional and clerical staff, and
central administration staff serving
the entire organization – are
normally considered an indirect
cost and not allowable.
Individual employee tuition
reimbursement is not allowable
Wisconsin Partnership Program Policy on Allowable and Unallowable Grant Expenses
UNALLOWABLE COSTS
Expense Item
Alcoholic Beverages
Alumni Activities
Bad Debts
Commencement/
Convocation
Contingency Funds
Defense, Prosecution,
Claims and Appeals
Depreciation
Donations and
Contributions
Entertainment
Fines and Penalties
Goods or Services for
Personal Use by
Employees
Institutional Review
Board Fees
Insurance
Interest
Investment
Management
Lobbying
Losses on Project
Agreements
Maintenance and
Repair
Payroll Fees
Pre-Award Costs
Proposal Costs
Sales Taxes
Scholarships
Revised 1/10/2017
Description
Alcoholic beverages are not allowable.
Alumni relations and alumni service costs are not allowable.
Losses from uncollectible accounts, collection costs and related legal costs are
not allowable.
Costs of ceremonies and receptions are not allowable.
Provisions made for events that are uncertain as to actual occurrence, timing or
extent are not allowable.
Defense, prosecution, claims and appeals are not allowable.
The cost of an asset – building or equipment – spread over the asset’s useful
life is not allowable.
Donations and contributions at a fundraising event, including gifts, memorials
and purchase of tables, are not allowable.
Amusement, social activities, and related costs, including tickets, meals, lodging
and gratuities, are not allowable.
Costs resulting from violations of laws and regulations are not allowable.
Items or services providing direct personal benefit to employees are not
allowable.
Costs associated with obtaining necessary approvals from research compliance
bodies, such as the Institutional Review Board, are considered institutional
costs and are not allowable. In fact, IRB fees are waived for WPP grantees.
Insurance coverage for normal business purposes, whether provided by an
external company or through a self-insurance program, is not allowable.
Interest expense is considered an institutional cost and not directly allocable to
a project.
Costs for investment management are not allowable.
Attempts to influence outcomes of elections or other political actions are not
allowable.
Costs in excess of available funding are not allowable as a direct cost on
subsequent project agreements.
Costs to keep property in generally efficient operating condition are not
allowable.
Fees for payroll processing and maintenance are considered a broader
organizational expense that cannot be specifically attributed to the WPP
project and are not allowable.
Pre-award costs – costs incurred prior to the start date of the project
agreement are not allowable.
Expenses related to the preparation of the proposal, including typing, copying
and mailing costs, prior to the grant award are considered institutional costs
and are not allowable.
State sales taxes paid by tax-exempt organizations or tax exempt entities are
not allowable and will not be reimbursed.
Scholarships are not allowable.
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