3026 Allowable Costs | ADMINISTRATION-5600-MANUAL
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Georgia Division of Aging Services |
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Chapter: |
3000 Area Agency on Aging (AAA) Administration |
Effective Date: |
11/28/2022 |
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Section Title: |
Allowable Costs |
Reviewed or Updated in: |
MT 2023-02 |
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Section Number: |
3026 |
Previous Update: |
MT 2014-02 |
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Summary Statement
Allowable costs are defined in the Older Americans Act; Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Grants.
Requirements
These cost principles shall apply to the expenditure of federal funds and local funds which are reported as match for federal funds.
In-kind contributions shall benefit the program for which they are reported as match.
No expenditure shall be used as match if it has been or will be counted as match for another award of federal or state funds.
Purchases
AAAs shall follow the criteria for determining allowable expenditures as prescribed in the Uniform Administrative Requirements, Cost Principles and Audit Requirements as applicable, and the following additional criteria:
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All purchases shall have been made by actual receipt of the service or merchandise or issuance of a purchase contract, voucher, or other legal document that binds both parties to the transaction, no later than the last day of the grant period for which funds have been budgeted and encumbered.
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Actual receipt of the service or merchandise and payment shall be made prior to the due date of the closeout report for the contract period for which funds have been budgeted and encumbered.
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Any service or merchandise placed on order in a fiscal program year, in accordance with this section which does not also meet the criterion in this section, shall be paid for with funds awarded for the fiscal year in which the service or merchandise is actually received and/or payment made.
Indirect Cost
The RC/AAA shall develop an Indirect Cost Allocation Plan approved in accordance with the Uniform Administrative Requirements, Cost Principles and Audit Requirements. Agencies shall submit documentation of compliance with official signatures of the contracting authority as part of the Area Plan and for subsequent annual plan updates.
All cost allocation plans shall provide sufficient detail, as defined by DAS, to allow proper evaluation of the plan.
Disallowed Costs
In accordance with the Uniform Administrative Requirements, Cost Principles and Audit Requirements, determination shall be made by an independent audit and/or monitoring by DHS or DAS relating to the allowable use of federal, state, and matching credit funds in accordance with 2 CFR 200 and other applicable laws, regulations and circulars promulgated by recognized authoritative bodies.
Any costs found to be unallowable, in accordance with those regulations referenced above shall be designated as questioned costs.
To recover unresolved questioned costs revealed by an audit or monitoring activity, DHS or DAS will send a Letter of Notification of Disallowance with Intent to Recover Costs by registered mail, return receipt requested, within 60 (sixty) calendar days following the failure to resolve all such questioned costs. The 60 calendar day period shall begin the day following the end of the six month period allowed for resolution in accordance with 2 CFR 200.
The RC/AAA shall resolve all findings and questioned costs within six months of receipt of the audit or notice of questioned costs, unless it requests and receives an extension from DHS/DAS.
The RC/AAA shall be liable to DHS/ DAS for any costs disallowed as a result of unresolved questioned costs revealed during an audit or monitoring relating to aging programs and/or expenditures.
Failure of the RC/AAA to secure an acceptable independent audit from a subcontractor, when required by law, within the time frame established in this section, relating to the recovery of questioned costs, shall be deemed non-resolution. Non-resolution shall be subject to such action as deemed appropriate by DAS in accordance with any sanctions or remedies, current or future, which may be developed and applied.
Disallowance resulting from non-receipt of required subcontractor audits shall be resolved in the same manner as if revealed by an independent audit or monitoring activity.