540 - Federal Cost Principles

Overview Federal cost principles provide guidance to federal agencies, recipients and subrecipients and contractors about what costs are considered allowable and what costs are unallowable under federal financial assistance awards. The cost principles also provide guidance related to applying overhead or indirect costs to a federal award, and what costs they can charge directly to the federal award. Subpart E of the Office of Management and Budget’s (OMB) uniform guidance provides details about cost principles, including allowable, unallowable, reasonable and applicable costs. Subpart E also provides a listing of 56 items of cost and identifies whether they are allowable or… Read More