Grants Budget & Allowable Cost Checker
Ensure grant compliance by checking allowable vs unallowable costs. Enter values for instant results with step-by-step formulas.
Formula
Total Request = (Allowable Direct Costs) + (Allowable Direct × Indirect Rate)
Federal grants (Uniform Guidance) strictly define what you can charge. Charging unallowable costs leads to audits and clawbacks. This tool helps segregate costs before you submit.
Worked Examples
Example 1: University Research
Problem:$100k Salaries, $1k Alcohol. 50% Indirect Rate.
Solution:Allowable: $100k. Unallowable: $1k. Indirect: $50k.
Result:Total Request: $150k. (Client pays $1k alcohol themselves).
Frequently Asked Questions
What happens if I charge an unallowable cost?
If audited, you must pay it back with interest. Frequent violations lead to debarment (banned from future grants).
Are visa fees allowable?
Generally yes, for short-term visas directly related to the project. Long-term immigration fees are usually not.
Background & Theory
Common Unallowable Costs
- Alcohol: Almost never allowed.
- Lobbying: Strictly forbidden.
- First Class Travel: Only economy is allowed (Fly America Act).
- Bad Debts: Cannot charge the government for other people not paying you.
Indirect Costs (F&A)
Facilities and Administration (Overhead). This covers lights, rent, and HR. Rates vary from 10% (de minimis) to 60%+ for major research universities. You apply this rate only to the Modified Total Direct Costs (MTDC), excluding things like Equipment >$5k or Tuition.
Cost Sharing
Some grants require "matching funds". You must prove you are chipping in 20% of the project cost using non-federal money.
History
Uniform Guidance (2 CFR 200)
In 2013, the US Office of Management and Budget (OMB) consolidated circulars into the "Uniform Guidance" (Super Circular). This set the standard for what costs the government will pay for. Key principle: Costs must be "Reasonable, Allocable, and Allowable".
The Cost of Compliance
Universities and Non-profits spend millions on compliance officers to prevent "unallowable" charges. A famous Stanford University scandal in the 90s involving a yacht charged to research overhead led to tighter scrutiny on Indirect Costs.