Unallowable costs

All unallowable costs must be removed from the grant within sixty days from the time the charge first appeared. The expense must be moved to another non-sponsored fund. It is the responsibility of the Principal Investigator and the departmental grant administrator to ensure only allowable costs remain on the grant. Any questions about unallowable costs should be directed to Grants and Contracts Accounting. 

Examples of unallowable costs

  • Alcoholic beverages
  • Alumni activities
  • Institution-furnished automobiles for personal use
  • Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements
  • Donations and contributions made by an institution
  • Entertainment
  • Executive and legislative lobbying
  • Insurance against defects
  • Fines and penalties
  • Goods and services for the personal use of employees
  • Housing and personal living expenses of an institution’s officers
  • Memberships in any civic, community or social organization or country club
  • Selling or marketing of goods or services
  • Trustees’ travel

In addition, the following costs are also unallowable:

  • Advertising expenses except for employee and subject recruitment
  • Bad debts
  • Commencement and convocation costs
  • Contingency provision costs
  • Interest, fund raising, and investment costs (exceeding third party interest expenses
  • Malpractice insurance that does not involve human subjects
  • Public relations costs
  • Student activity costs
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