Costs directly charged to a sponsored project must conform to the terms and conditions of the specific award. To be allowed as a direct cost on a sponsored project, a cost must be:
- Allocable: used solely to advance the project work and can be identified specifically with a particular project or activity
- Allowable: not subject to any restrictions under Uniform Guidance, agency terms and conditions, the specific contract or award agreement, or IU policy
- Reasonable: necessary and justifiable for the performance of the award and does not exceed what would be incurred by a prudent person under the same circumstances
- Consistent: treated the same way in like circumstances regardless of the source of funding
Expenses to cost share subaccounts and program income accounts must follow the same terms and conditions. These expenses must also pass the allocable, allowable, reasonable, and consistent tests. If a cost would not be allowed on the sponsored award, then it is also not allowed as cost share or as an expense on a program income account.
Learn more about cost share on sponsored projectsLearn more about program income on sponsored projectsORA Guidance for Allocating the Cost of Gift Cards (Accessible 08/30/21)