Common use of Allowable Costs/Cost Principles Clause in Contracts

Allowable Costs/Cost Principles. 1. Indirect costs, except fringe benefits, are unallowable (NGR 5-1, Chapter 5). 2. Individual employee compensation comprises a significant portion of total costs charged to CA Appendices. The auditor should give particular attention to the allocability of these costs. The distribution of individual employee compensation to projects must follow applicable Federal cost principles, NGR 5-1, and the terms and conditions in Agreement Appendices. Therefore, the auditor’s testing should include tests of the time and effort reporting system to support the distribution of compensation costs (NGR 5-1, Chapter 5). 3. Fringe benefits for which the State does not bill the State Military Department directly, such as workmen’s compensation, unemployment compensation, State sponsored life and health insurance, and retirement benefits are allowable if they are part of the State’s Central Service Cost Allocation Plan (CSCAP) approved by the Department of Health and Human Services (HHS). However, for these costs to be reimbursable, all of the requirements of NGR 5-1, Chapter 5 have to be met (NGR 5-1, Chapter 5): a. The individual cost items have to be reimbursable under the terms of individual Appendices. b. Fringe benefit costs for which the State does not bill the State Military Department directly shall be reimbursable by applying a fringe benefit rate to the costs of actual salaries paid to employees. c. Fringe benefits which are neither direct costs, nor included in the billed central services section of the State’s CSCAP approved by HHS, are not reimbursable.

Allowable Costs/Cost Principles. 1. Indirect costs, except fringe benefits, are unallowable (NGR 5-1, Chapter 5). 2. Individual employee compensation comprises a significant portion of total costs charged to CA Appendicesappendices. The auditor should give particular attention to the allocability of these costs. The distribution of individual employee compensation to projects must follow applicable Federal cost principles, NGR 5-15 -1, and the terms and conditions in Agreement Appendices. Therefore, the auditor’s testing should include tests of the time and effort reporting system to support the distribution of compensation costs (NGR 5-1, Chapter 5). 3. Fringe benefits for which the State does not bill the State Military Department directly, such as workmen’s compensation, unemployment compensation, State sponsored life and health insurance, and retirement benefits are allowable if they are part of the State’s Central Service Cost Allocation Plan (CSCAP) approved by the Department of Health and Human Services (HHS). However, for these costs to be reimbursable, all of the requirements of NGR 5-1, Chapter 5 have to be met (NGR 5-1, Chapter 5): a. The individual cost items have to be reimbursable under the terms of individual Appendicesappendices. b. Fringe benefit costs for which the State does not bill the State Military Department directly shall be reimbursable by applying a fringe benefit rate to the costs of actual salaries paid to employees. c. Fringe benefits which are neither direct costs, nor included in the billed central services section of the State’s CSCAP approved by HHS, are not reimbursable.

Allowable Costs/Cost Principles. 1. Indirect costs, except fringe benefits, are unallowable (NGR 5-1, Chapter 5). 2. Individual employee compensation comprises a significant portion of total costs charged to CA Appendicesappendices. The auditor should give particular attention to the allocability of these costs. The distribution of individual employee compensation to projects must follow applicable Federal cost principles, NGR 5-1, and the terms and conditions in Agreement Appendices. Therefore, the auditor’s testing should include tests of the time and effort reporting system to support the distribution of compensation costs (NGR 5-1, Chapter 5). 3. Fringe benefits for which the State does not bill the State Military Department directly, such as workmen’s compensation, unemployment compensation, State sponsored life and health insurance, and retirement benefits are allowable if they are part of the State’s Central Service Cost Allocation Plan (CSCAP) approved by the Department of Health and Human Services (HHS). However, for these costs to be reimbursable, all of the requirements of NGR 5-1, Chapter 5 have to be met (NGR 5-1, Chapter 5): a. The individual cost items have to be reimbursable under the terms of individual Appendicesappendices. b. Fringe benefit costs for which the State does not bill the State Military Department directly shall be reimbursable by applying a fringe benefit rate to the costs of actual salaries paid to employees. c. Fringe benefits which are neither direct costs, nor included in the billed central services section of the State’s CSCAP approved by HHS, are not reimbursable.