Common use of False Clause in Contracts

False. The fact that an expenditure is both necessary and not explicitly prohibited by law and program regulations is only part of the criteria that must be met for it to be considered an allowable CDBG expense. In addition, the expenditure must: • Have been authorized by the grantee (through an approved budget or other mechanism). • Be reasonable. • Have been treated by the subrecipient in a manner consistent with its normal procedures for computing costs. • Be allocable to an approved-CDBG cost objective. • Be net of all applicable credits.

False. The fact that an expenditure is both necessary and not explicitly prohibited by law and program regulations is only part of the criteria that must be met for it to be considered an allowable CDBG expense. In addition, the expenditure must: •  Have been authorized by the grantee (through an approved budget or other mechanism). •  Be reasonable. •  Have been treated by the subrecipient in a manner consistent with its normal procedures for computing costs. •  Be allocable to an approved-CDBG cost objective. •  Be net of all applicable credits.