(a) Costs must meet the following general criteria to be allowable:
(1) Must be necessary and reasonable for the performance of the grant award, and allocable to the grant award.
(2) Must be accorded consistent treatment. A cost may not be assigned as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated as an indirect cost.
(3) Must be adequately documented.
(4) Must be allowable under, or otherwise comply with, grant program requirements and grant award terms and conditions.
(5) Must be in compliance with applicable state laws and requirements.
(b) A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. In determining the reasonableness of a given cost, consideration will be given to:
(1) Whether the cost is generally recognized as ordinary and necessary for the proper and efficient performance of the grant award.
(2) The requirements of the grant program and the terms and conditions of the grant award.
(3) Market prices for comparable goods or services for the geographic area.
(4) Whether the recipient deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the award's cost.
(c) A cost is allocable to the grant award if the cost is incurred specifically for the award.
(1) If the cost benefits both award and non-award activities, the proportion that may be approximated using reasonable and properly documented methods may be charged to the grant award in accordance with section 311.
Credits
Note: Authority cited: Sections 407 and 485, Food and Agricultural Code. Reference: Sections 201, 401, 401.5, 404 and 485, Food and Agricultural Code; and Section 18901.2, Revenue and Taxation Code.
1. New section filed 9-21-2016; operative 1-1-2017. Exempt from Administrative Procedure Act pursuant to Food and Agricultural Code Section 485(d), which provides “Procedures, forms, and guidelines established for these grant programs, including the application process, are exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.” (Register 2016, No. 39).
This database is current through 4/26/24 Register 2024, No. 17.
Cal. Admin. Code tit. 3, § 330.1, 3 CA ADC § 330.1
