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Examples
of Unallowable Activities and Objects
OMB
Circular A-21 identifies certain ACTIVITIES (think
of these as something you DO - represented by an Account
Number) and OBJECTS (think of these as something
you BUY - represented by a Subsidiary Ledger Subcode)
as unallowable for reimbursement by the Federal Government.
UNALLOWABLE
ACTIVITIES
Identified as UNALLOWABLE by the ACCOUNT NUMBER
- Fund
raising
- Lobbying
- Commencement
and convocation
- General
public relations and alumni activities
- Certain
student activities, e.g., intramural activities, students
clubs, etc.
- Managing
investments solely to enhance income
- Prosecuting
claims against the Federal Government
- Defending
or prosecuting certain criminal, civil or administrative
proceedings
- Housing
and personal living expenses of University Officers
- Selling
or marketing of goods or services (does not apply
to selling goods or services internal to the university
by its Service Centers)
UNALLOWABLE
OBJECTS
Identified as UNALLOWABLE by the SUBSIDIARY SUBLEDGER
CODE
- Advertising
(only certain types are allowable)
- Alcoholic
beverages
- Entertainment
- Fines
and penalties
- Memorabilia
or promotional materials (allowable if · used for
"Employee Morale")
- Moving
costs if employee resigns within 12 months
- Certain
recruitment costs, e.g., color advertising
- Certain
travel costs, e.g., first-class travel
- Cash
donations to other parties, such as donations to other
universities, except for small contributions for purposes
such as donation in lieu of flowers at a memorial
- Costs
in excess of University severance policy
- Interest
payments, except certain interest specifically coded
as paid to outisde parties and authorized by the Controller's
Office
- Memberships
in civic, community or social organizations, or dining
or country clubs
- Goods
or services for the personal use of employees, including
automobiles
If
you have any questions about the allowability of a particular
expense, check the GENERAL LEDGER CODE, talk with your
local financial administrator, or contact the Office of
Sponsored Research. In
addition to defining unallowability, OMB Circular A-21
also presents other Cost Principles.
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