Section 20.40.320. Allowable costs.

	(a)  Subject to (b) - (d) of this section, a grantee may use money received under a grant to pay for costs associated with the grant only if the cost is reflected in the budget of the grant project.  
	(b)  A grantee must obtain the prior approval of the authority in writing before paying a cost associated with the grant that is not reflected in the budget of the grant project.  
	(c)  If doing so is specified in the grant agreement or in the budget for the grant project, a grantee may pay for indirect costs of the grant project in accordance with an indirect-cost rate that has been agreed upon between the federal government and the grantee as an accurate reflection of the cost of the items included under that rate. In computing the amount of the grant allocated to indirect costs, the authority will accept the grantee's indirect-cost rate most recently negotiated with the federal government at the time of the award of the grant. An amount allocated for indirect costs in a grant is considered part of the grant and not an addition to it. An increase or decrease in the grantee's federal indirect-cost rate made after the grant award does not affect the amount of the grant. A grantee shall make available to the authority upon request all federal audit data relating to indirect costs of the grant project paid by the federal government.  
	(d)  A grantee that does not have a federally approved indirect-cost rate may include administrative costs in the grantee's proposed grant project budget as direct costs. The grantee shall document the proposed costs in its justification narrative for the proposed grant project budget.  
	(e)  A grantee may not use grant money to supplant the grantee's own budgetary or financial obligations.  

Authorities

37.14.045;47.30.031;47.30.051;47.30.056

Notes

Reference

20 AAC 40.355

Authority

AS 37.14.045 AS 47.30.031 AS 47.30.051 AS 47.30.056

History

Eff. 10/24/2004, Register 172