[Code of Federal Regulations]

[Title 49, Volume 1]

[Revised as of October 1, 2005]

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

[CITE: 49CFR18.22]



[Page 127-128]

 

                        TITLE 49--TRANSPORTATION

 

          Subtitle A--Office of the Secretary of Transportation

 

PART 18_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE 

AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 18.22  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 128]]



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--

------------------------------------------------------------------------

State, local or Indian tribal government..  OMB Circular A-87.

Private nonprofit organization other than   OMB Circular A-122.

 an (1) institution of higher education,

 (2) hospital, or (3) organization named

 in OMB Circular A-122 as not subject to

 that circular.

Educational institutions..................  OMB Circular A-21.

For-profit organization other than a        48 CFR part 31. Contract

 hospital and an organization named in OBM   Cost Principles and

 Circular A-122 as not subject to that       Procedures, or uniform cost

 circular.                                   accounting standards that

                                             comply with cost principles

                                             acceptable to the Federal

                                             agency.

------------------------------------------------------------------------



    (c) The overhead cost principles of OMB Circular A-87 shall not 

apply to State highway agencies for FHWA funded grants.

    (d) Sections 3(1) and 9(p) of the UMT Act of 1964, as amended, 

authorize the Secretary to include in the net project cost eligible for 

Federal assistance, the amount of interest earned and payable on bonds 

issued by the State or local public body to the extent that the proceeds 

of such bonds have actually been expended in carrying out such project 

or portion thereof. Limitations are established in sections 3 and 9 of 

the UMT Act of 1964, as amended.

    (e) Section 9 of the UMT Act of 1964, as amended, authorizes grants 

to finance the leasing of facilities and equipment for use in mass 

transportation services provided leasing is more cost effective than 

acquisition or construction.



[53 FR 8086 and 8087, Mar. 11, 1988, as amended at 53 FR 8086, Mar. 11, 

1988]