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1 Wisconsin Partnership Program Policy on Allowable and Unallowable Grant Expenses BACKGROUND The Wisconsin Partnership Program (WPP) has specific policies on allowable and unallowable expenses for programs and projects it funds. WPP staff review all proposed expenditures and discuss any questions or concerns with the applicant or grantee. DEFINITIONS Allowable Costs: The WPP allows expenses directly incurred by the grantee as outlined in the budget of the approved application. All project budgets must successfully pass a technical review by WPP financial staff. The grantee must be able to specifically identify project expenses associated with the WPP grant award. Unallowable Costs: The non-supplanting stipulation requires that all reimbursable expenses be directly attributable to the grant and that WPP funds cannot replace other funding the grantee organization is receiving. Examples include: overhead pre-award costs alcoholic beverages proposal costs entertainment fines lobbying donations any expenses for goods and services for personal use of employees Because of non-supplanting requirements, the WPP does not allow indirect costs, such as overhead or administrative costs. The WPP requires that grantees have existing infrastructure in place to provide indirect support for the grant agreement. Grantees must indicate their capacity to oversee and manage the project, programmatically and financially, before any funding decisions are made. Overhead is not an allowable expense, even if an existing cost allocation model exists. Expenses for existing clerical and administrative staff such as book keepers or accountants are considered an indirect cost unless a new position has been created for the sole purpose of managing the WPP grant. POLICY ALLOWABLE COSTS Advertising Advertising for personnel recruitment, purchase of goods or sale of surplus materials is allowable if specifically related to the project, such as recruitment of dedicated personnel. Audit Grant funds may be used to support a program specific audit in the absence of a routine organizational audit. Books, Journals and Subscriptions Books, journals and subscriptions to professional and technical publications are A review of financial controls by an external audit firm is considered a broader organizational expense that cannot be specifically attributed to the WPP project and is not Revised 10/1/2017

2 Consultant Consultant services an individual or firm hired to perform professional, short-term services are allowable if specifically related to the Copy Center/Stockroom Costs The operating costs of a unit (photocopy service, stockroom) that provides routine goods and services within an organization are Equipment Equipment is defined as tangible personal property with a useful life of more than two years and a unit cost greater than or equal to $5,000. Special purpose equipment scientific equipment used only for technical activities is allowable as a direct cost if specifically related to the General purpose equipment computers, office equipment, and furnishings, which are not limited to research or technical use would be allowable if directly used for the grant. Fundraising Honoraria Meals and Meeting Refreshments Memberships and Dues Office Supplies With prior approval by the WPP, development activities are allowable so long as they are related to the grant, outlined in the project work plan and contribute to sustainability of the goals of the Honoraria, such as a speaker s fee, are project with prior approval by the Wisconsin Partnership Program. Meeting refreshments, site visit meals and guest meals are allowable if specifically related to the Meals associated with staff travel, conference or symposia are allowable but are subject to limitations established by the organization. Only memberships and dues specifically related to the project are allowable with prior approval by the Wisconsin Partnership Program. Office supplies those items usually maintained in a departmental stock for general use by all staff, including pens, pencils, writing paper, file folders, Revised 10/1/ Recreational activities, either for entertainment or team-building, are not A general allocation of office expenses would be considered an indirect cost and not

3 departmental letterhead, envelopes, staples, staplers and rulers are allowable if specifically related to the Participant Support Costs Participant support costs (PSC) are small payments to individuals who participate occasionally in research, education, or community-based programs. This may include stipends paid to, or on behalf of, participants or trainees (but not employees) in connection with official meetings, conferences, or symposia, training or research projects. These costs are allowable with WPP prior approval and in accordance with the PSC Guidelines. Patient Care Supports Personal Computers Postage/Messenger Service Professional Services Public Relations and Marketing Rent Salaries and Fringe Benefits: Administrative and Clerical Personnel Payments may be in the form of gift cards or other non-cash items or incentives. Cash may not be used. A $50 incentive limit per occurrence applies for nonresearch related participation. Clinical services that involve screening and education, or mobilizing resources to promote healthcare access are The purchase of personal computers is Postage, such as routine postage costs, is allowable and shipping of materials, receiving goods for project use or other delivery of items are allowable if directly related to the Individuals or companies hired to perform professional, short-term services, such as accounting or legal services, are allowable if specifically related to the Public relations and marketing costs are Rental costs cost to lease building space or equipment are allowable if specifically related to the project and they represent a new cost solely attributable to the Such expenses are allowable only if specifically related to the project and represent a new cost incurred. Revised 10/1/ Patient care with the sole purpose of providing clinical services related to treatment or follow-up for specific health conditions is not General costs, such as corporate legal or accounting services, are generally indirect costs and not General rental costs such as allocation of preexisting office space is indirect cost and not Salaries and fringe benefits of general corporate or organizational support staff departmental administration, including professional and clerical staff, and

4 central administration staff serving the entire organization are normally considered an indirect cost and not Salaries and Fringe Benefits: Technical and Programmatic Personnel Software Specialized Service Facilities or Service Center Student Publication and Activity Costs Telephone, Fax Lines and Pagers Termination Costs Travel Tuition Salaries and fringe benefits for technical and programmatic personnel staff personnel performing scientific or other technical work related to a project are The purchase of computer software is allowable if related to the Operating units that use specialized equipment or technical expertise to provide goods or services for a fee are Costs of student publications and activities are Equipment and service costs for local telephone, fax service and pagers are Costs incurred due to early termination of a project agreement are allowable so long as effort is made to minimize those costs by canceling contracts and reselling surplus goods. Travel transportation, lodging, subsistence and related costs for official business, in accordance with organizational policy is allowable if specifically related to the UW graduate students under the direction of a Principal Investigator who are directly working on the project and being funded by the project may incur tuition remission charges, which are Individual employee tuition reimbursement is not allowable Revised 10/1/2017 4

5 UNALLOWABLE COSTS Expense Item Alcoholic Beverages Alumni Activities Bad Debts Commencement/ Convocation Contingency Funds Defense, Prosecution, Claims and Appeals Depreciation Donations and Contributions Entertainment Fines and Penalties Goods or Services for Personal Use by Employees Hospitality Institutional Review Board Fees Insurance Interest Investment Management Lobbying Losses on Project Agreements Maintenance and Repair Payroll Fees Pre-Award Costs Proposal Costs Description Alcoholic beverages are not Alumni relations and alumni service costs are not Losses from uncollectible accounts, collection costs and related legal costs are not Costs of ceremonies and receptions are not Provisions made for events that are uncertain as to actual occurrence, timing or extent are not Defense, prosecution, claims and appeals are not The cost of an asset building or equipment spread over the asset s useful life is not Donations and contributions at a fundraising event, including gifts, memorials and the purchase of tables, are not Amusement, social activities, and related costs, including tickets, meals, lodging and gratuities, are not Costs resulting from violations of laws and regulations are not Items or services providing direct personal benefit to employees are not Hospitality expenses, such as sympathy flowers, retirement gifts and nonprogram greeting cards are not Costs associated with obtaining necessary approvals from research compliance bodies, such as the Institutional Review Board, are considered institutional costs and are not In fact, IRB fees are to be waived for WPP grantees. Insurance coverage for normal business purposes, whether provided by an external company or through a self-insurance program, is not Interest expense is considered an institutional cost and not directly allocable to a Costs for investment management are not Attempts to influence outcomes of elections or other political actions are not Costs in excess of available funding are not allowable as a direct cost on subsequent project agreements. Costs to keep property in generally efficient operating condition are not Fees for payroll processing and maintenance are considered a broader organizational expense that cannot be specifically attributed to the WPP project and are not allowable unless marginal costs for new project hires. Pre-award costs costs incurred prior to the start date of the project agreement are not Expenses related to the preparation of the proposal, including typing, copying and mailing costs, prior to the grant award are considered institutional costs and are not Revised 10/1/2017 5

6 Expense Item Sales Taxes Scholarships Description State sales taxes paid by tax-exempt organizations or tax-exempt entities are not allowable and will not be reimbursed. Scholarships are not Revised 10/1/2017 6

Allowable Costs. Exception to Direct or Indirect Cost Category. Item of Cost Description Normally Direct or Indirect Cost

Allowable Costs. Exception to Direct or Indirect Cost Category. Item of Cost Description Normally Direct or Indirect Cost Allowable Costs The Federal Office of Budget and Management (OMB) 2 CFR Part 200 provides principles to be applied to determine the allowability of certain items of cost on Federal Awards. The principles