[Code of Federal Regulations]

[Title 34, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 34CFR609.41]



[Page 255]

 

                           TITLE 34--EDUCATION

 

 CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION

 

PART 609_STRENGTHENING HISTORICALLY BLACK GRADUATE INSTITUTIONS PROGRAM

--Table of Contents

 

             Subpart E_What Conditions Must a Grantee Meet?

 

Sec. 609.41  What are allowable costs and what are the limitations on 

allowable costs?



    (a) Allowable costs. Except as provided in paragraphs (b) and (c) of 

this section, a grantee may expend grant funds for activities that are 

reasonably related to carrying out the allowable activities included in 

its approved application.

    (b) Supplement and not supplant. A grantee shall use grant funds so 

that they supplement, and to the extent practical, increase the funds 

that would otherwise be available for the activities to be carried out 

under the grant, and in no case supplant those funds.

    (c) Limitations on allowable costs. A grantee may not--

    (1) Spend more than fifty percent of its grant award in each fiscal 

year for costs relating to constructing or maintaining a classroom, 

library, laboratory, or other instructional facility; and

    (2) Use an indirect cost rate to determine allowable costs under its 

grant.



(Authority: 20 U.S.C. 1062, 1063b, and 1066)