What are some common unallowable grant expenses?

Charges to a grant that the awarding agency determine to be unallowable in accordance with applicable Federal or State statutes, regulations, or the terms and conditions of the award generally include the following items:

• Administrative salaries and associated fringes
• Advertising and public relations costs associated with meetings, conventions, or other events related to other activities of the institution
• Advisory councils or committees
• Alcoholic beverages
• Alumni activities
• Audit services not directly related to the grant
• Bad debts and their related collection and legal costs
• Bonding costs not directly related to the grant
• Commencement and convocation costs for Institutions of Higher Education
• Contributions and donations made to any individual or organization
• Cover losses on other awards or contracts
• Food and Entertainment costs
• Honorary gifts or gratuitous payments
• Insurance costs outside of employee fringes that are not specifically approved in the award budget
• Interest on delayed payments
• Lobbying
• Costs of memberships in any country club, social or dining club or organization, or organization whose primary purpose is lobbying
• Office Supplies
• Pcard and credit card administrative charges
• Promotional items
• Student activity costs
• Tips or gratuities
• Travel costs for dependents

Keep in mind that this list is not all-inclusive and is subject to change.

Questions?
Email Accounting Services at hscacc@ttuhsc.edu.

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How do I Budget for IDC Expense on my Grant?

The IDC budget should be calculated on the budgeted modified total direct costs. The MTDC includes all salaries and wages, fringe benefits, materials, supplies, services, travel and up to the first $25,000 of each subcontract/subaward. Certain expenses are excluded from the modified total direct cost base. Equipment, capital expenditures, charges for patient care, student tuition and remission, rental costs of off-site facilities, scholarships, fellowships, and the portion of each subcontract on excess of $25,000 must be excluded from the modified total direct cost base.

Patient care is defined as costs of routine (standard of care) services provided by a hospital or clinic to patients participating as research subjects. Indirect cost rates are applied to the cost of patient visits and expenses that are solely for the purpose of the research project.

Example IDC Budget Calculation: Received a $100,000 grant with an IDC rate of 35%, $4,000 of capital.

1. ($100,000 - $4,000) / 1.35 = $71,111.11 Direct Expense Budget Amount excluding capital
2. $71,111.11 * .35 = $24,888.89 IDC Budget

Questions?
Email Accounting Services at hscacc@ttuhsc.edu.

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