[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR32.27]



[Page 161]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 32_ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH 

INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT 

ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec.  32.27  Allowable costs.



    (a) General. For each kind of recipient or subrecipient of a cost-

type assistance award, or each contractor receiving a. cost-type 

contract under an assistance award, there is a set of Federal principles 

for determining allowable costs. Allowability of costs shall be 

determined in accordance with the cost principles applicable to the 

entity incurring the costs.

    (b) Governmental organizations. Allowability of costs incurred by 

State, local or federally-recognized Indian tribal governments that may 

be subrecipients or contractors under awards subject to this part is 

determined in accordance with the provisions of OMB Circular A-87,\8\ 

``Cost Principles for State and Local Governments.''

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    \8\ See footnote 1 to Sec.  32.1(a).

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    (c) Non-profit organizations. The allowability of costs incurred by 

non-profit organizations that may be recipients or subrecipients of 

awards subject to this part, or contractors under such awards, is 

determined in accordance with the provisions of OMB Circular A-122, 

``Cost Principles for Non-Profit Organizations.''

    (d) Higher educational institutions. The allowability of costs 

incurred by institutions of higher education that may be recipients, 

subrecipients, or contractors is determined in accordance with the 

provisions of OMB Circular A-21, ``Cost Principles for Educational 

Institutions.''

    (e) Hospitals. The allowability of costs incurred by hospitals that 

are recipients, subrecipients, or contractors is determined in 

accordance with the provisions of Appendix E to 45 CFR part 74, 

``Principles for Determining Costs Applicable to Research and 

Development Under Grants and Contracts with Hospitals.''

    (f) For-profit organizations. The allowability of costs incurred by 

subrecipients or contractors that are either for-profit organizations or 

non-profit organizations listed in Attachment C to Circular A-122 is 

determined in accordance with the provisions of the Federal Acquisition 

Regulation (FAR) at 48 CFR part 31; however, the grants officer or the 

award terms and conditions may in rare cases authorize a determination 

of allowable costs that are in accordance with uniform cost accounting 

standards and comply with cost principles acceptable to the Department 

of Defense.