[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR437.22]

[Page 1161-1162]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
PART 437_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE 
AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents
 
                    Subpart C_Post-Award Requirements
 
Sec. 437.22  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost

[[Page 1162]]

principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

------------------------------------------------------------------------
          For the costs of a--               Use the principles in--
------------------------------------------------------------------------
(1) State, local or Indian tribal        OMB Circular A-87.
 government.
(2) Private nonprofit organization       OMB Circular A-122.
 other than an (i) institution of
 higher education, (ii) hospital, or
 (iii) organization named in OMB
 Circular A-122 as not subject to that
 circular.
(3) Educational institutions...........  OMB Circular A-21.
(4) For profit organizationother than a  48 CFR Part 31. Contract Cost
 hospital and an organization named in    Principles and Procedures, or
 OMB Circular A-122 as not subject to     uniform cost accounting
 that circular.                           standards that comply with
                                          cost principles acceptable to
                                          the Federal agency.
------------------------------------------------------------------------