In my last article I walked through how to fast track your grant management training with a checklist to make sure you are covering the key areas in the Administrative Requirements section of the new grant regulations in 2 CFR Part 200.

In Part II of our series, I’ve included a 35-question training checklist to cover the major sections of the Federal Cost Principles so you can stay out of trouble with your grant spending.

Cost Principles-How to Spend Federal Funds the Right Way

Whether you are looking for a comprehensive training program on the Cost Principles (or developing your own) it’s important to include both the basics of what makes costs allowable, as well as how to differentiate between direct and indirect costs.

In addition, the grant management environment has changed with 2 CFR Part 200 and there are now new and innovative ways to structure your grant budget to strategically maximize your funding streams on Federal awards.

This means that Cost Principles takes on a new role as both a list of cost examples, and also the foundation of your overall grant strategy and planning.

Look for these grant management areas at a minimum in your training Fast Track Your Grant Managemen:

Direct Costs-The Foundation of Award Spending

• What makes a cost a “direct” cost?
• What types of things can I charge “directly” to the grant?
• Are there restrictions on what can be classified as direct costs?
• What does it mean to have “consistency of cost treatment” on our Federal award?
• What are some examples of direct costs?
• Does equipment Fast Track Your Grant Management purchased to support the program have a different cost treatment?
• What is a direct cost distribution base?
• What are the types of costs included in the direct cost distribution base used for calculating the indirect cost rates?
• What opportunities are included in the new grant regulations for direct costs spending on the Federally sponsored projects and programs?

Indirect Costs-How to Get the Feds to Pay Their “Fair” Share

• How are indirect costs different from direct costs?
• What are the basics of charging indirect costs to an award?
• What are some examples of indirect costs which I may encounter?
• Can I choose how to allocate indirect costs to a Federal award?
• How do you calculate an indirect cost rate?
• What is the process for rate negotiation?
• How are indirect costs allocated to various cost objectives?
• How are indirect cost rates negotiated and approved?
• What are the various types of indirect cost rates available to us?
• What new cost treatments for indirect costs are included in the new grant regulations in 2 CFR Part 200?

Making Sure Costs are Allowable to Charge the Federal Award

• What are the basics of cost allowability?
• How do I know if my expenses are “reasonable?
• What are some examples of employee related allowable costs?
• Can I charge per diem travel costs?
• What are the time and effort reporting requirements?
• What are some examples of facilities and equipment related allowable costs?
• Are there limits on Professional Service charges?
• Can I pre-spend on an award to meet our schedule?

Avoiding Disallowance-What Makes Costs Unallowable

• What makes costs unallowable to charge a Federal award?
• What are some examples of employee related unallowable costs?
• Can we give everyone a raise after we land the big grant?
• What are some other examples of unallowable costs that I may encounter?
• Can I pay for beer at the annual conference?
• How about donating leftover supplies to the local shelter?
• Why can’t I purchase a big, fancy copier to use directly on our Federal project?
• How can I minimize the risks of costs being disallowed by our funding agency?

Ready to Improve Your Grant Management?

How about you?

Would you like to be a better grant manager?

We have another grant management training seminar coming soon.

Click here to get all the details!

Hope to see you there!

Author:

Lucy Morgan CPA, MBA

CEO, Compliance Warrior

Author of “Decoding Grant Management-The Ultimate Success Guide to the Federal Grant Regulations in 2 CFR Part 200” The 2nd Edition is now available on Amazon in Paperback and Kindle versions.