Attachment 1

Attachment 1

Item Category	Description	Allowable (Conditions)	Not Allowable (Conditions)	OMB Circular A-87 Attachment B Reference
Accounting (Administrative)	The cost of establishing and maintaining accounting and other information systems	Always allowable		B.1.
Advertising (Bid Advertisement)	"Advertising costs" are the cost of advertising media and corollary administrative costs	When incurred for the recruitment of personnel, the procurement of goods and services, the disposal of surplus material, and any other specific purposes necessary to meet the requirements of the Federal award	Costs associated with the disposal of surplus material when all disposal costs are reimbursed based on a standard rate as specified in the grants management common rule Costs designed solely to promote the governmental unit	B.2.a B.2.c B.2.e.(1)-(4)
Public Relations (Administrative)	"Public relations" includes community relations and means those activities dedicated to maintaining the image of the governmental unit or maintaining or promoting understanding and favorable relations with the community or public at large or any segment of the public	A direct cost attributable only to the project and (a) incurred to communicate with the public and the press on activities regarding the award project or (b) matters of public concern such as awards, financial aspects, etc.	Costs of displays, demonstrations, and exhibits Costs of meeting rooms, hospitality suites, and other special facilities used in conjunction with shows or other special events Salaries and wages of employees engaged in setting up and displaying exhibits, making demonstrations, and providing briefings Costs designed solely to promote the governmental unit	B.2.b B.2.d B.2.e.(1)-(4)
Advisory Councils (Other Expenditures)		Allowable as a direct cost where authorized by the Federal awarding agency or as an indirect cost where allocable to Federal awards		B.3.
Alcoholic beverages			Always unallowable	B.4.
Audit services (Other Expenditures)		Allowable provided that the audits were performed in accordance with the Single Audit Act Other audit costs if specifically approved by the awarding or cognizant agency		B.5.
Automatic electronic data processing (Administrative)		Always allowable		B.6.
Bad debts (Other Expenditures)	Any losses arising from uncollectable accounts and other claims, and related costs		Unallowable unless provided for in Federal program award regulations	B.7.
Bonding costs (Bonding)	Costs of bonding employees and officials	Allowable to the extent that such bonding is in accordance with sound business practice		B.8.
Budgeting (Project Planning)	Costs incurred for the development, preparation, presentation, and execution of budgets	Always allowable		B.9.
Communications (Administrative)	Costs of telephone, mail, messenger, and similar communication services	Always allowable		B.10.
Compensation for personnel services (Apply to Category)	All remuneration, paid currently or accrued, for services rendered during the period of performance under Federal awards, including but not necessarily limited to wages, salaries, and fringe benefits	This section deals with wages, salaries, fringe benefits, pension plan costs, post-retirement health benefits, severance pay, support of salaries and wages, donated services - which are generally allowable if reasonable and in accordance with governmental laws		B.11.a.-i.
Contingencies	Contributions to a contingency reserve or any similar provision made for events the occurrence of which cannot be foretold with certainty as to time, or intensity, or with an assurance of their happening		Always unallowable Note: The term "contingency reserve" excludes self-insurance, pension plans, and post-retirement health and other benefit reserves computed using acceptable actuarial cost methods	B.12.
Contributions and donations	Including case, property, and services, by governmental units to others, regardless of the recipient		Always unallowable	B.13.
Defense and prosecution of criminal and civil proceedings, and claims		Legal expenses required in the administration of Federal programs	Legal expenses for the prosecution of claims against the Federal Government	B.14.a.-b.
Depreciation and use allowances (Apply to Category)	Means of allocating the cost of fixed assets on hand	Generally allowable if reasonable and in accordance with governmental laws		B.15.a.-h.
Disbursing service (Administrative)	The cost of disbursing funds by the Treasurer or other designated officer	Always allowable		B.16.
Employee morale, health, and welfare costs (Apply to Category)	The costs of health or first-aid clinics and/or infirmaries, recreational facilities, employee counseling services, employee information publications, and any related expenses	Always allowable Note: Any income generated by these activities will be offset against expenses		B.17.
Entertainment	Including amusement, diversion, and social activities and any costs directly associated with such costs		Always unallowable	B.18.
Equipment and other capital expenditures (Equipment)	This section covers those costs associated with the following terms: capital expenditure, equipment, and other capital assets	May be allowable if approved by the appropriate Federal agency. See Circular A-87 for requirements		B.19.a.-f.
Fines and penalties	Fines, penalties, damages, and other settlements resulting from violations (or alleged violations) of, or failure of the governmental unit to comply with, Federal, State, local, or Indian tribal laws and regulations		Unallowable except when incurred as a result of compliance with specific provisions of the Federal award or written instructions by the awarding agency authorizing in advance such payments	B.20.
Fund raising and investment management costs			Always, regardless of the purpose for which the funds will be used Note: Such costs associated with investments covering pension, self-insurance, or other funds which include Federal participation allowed by Circular A-87 are allowable	B.21.a. B.21.b. B.21.c
Gains and losses on disposition of depreciable property and other capital assets and substantial relocation of Federal programs			Generally not allowed. See Circular A-87 for exceptions and details	B.22.a.-c.
General government expenses	Including: salaries and expenses of the State legislatures, tribal councils, or similar local governmental bodies for all governmental activities. Federally recognized Indian tribal governments and Councils Of Governments (COGs)	The portion of salaries and expenses directly attributable to managing Federal programs by the chief executive and his staff is allowable	Always unallowable	B.23.a. B.23.b.
Idle facilities and idle capacity	See Circular A-87 for definitions		Unallowable, except under certain conditions as listed in Circular A-87	B.24.a.-c.
Insurance and indemnification (Other Expenditures)	Costs of insurance required or approved and maintained, pursuant to the Federal award Costs of other insurance in connection with the general conduct of activities Actual losses which could have been covered by permissible insurance Direct or reserve fund payments to certain self-insurance programs including workers’ compensation, unemployment compensation, and severance pay, and similar employee benefits Costs of commercial insurance that protects against the costs of the contractor for correction of the contractor’s own defects in materials or workmanship	Always allowable Allowable subject to limitations listed in Circular A-87 Allowable subject to provisions listed in Circular A-87	Unallowable unless expressly provided for in the Federal award Always unallowable	B.25.a. B.25.b.(1)-(2) B.25.c. B.25.d.(1)-(5) B.25.e. B.25.f B.25.g B.25.h
Interest (Other Expenditures)	Costs incurred for interest on borrowed capital or the use of a governmental unit’s own funds Financing costs (including interest) paid or incurred on or after the effective date of Circular A-87	Allowable subject to conditions listed in Circular A-87	Unallowable unless authorized by Federal legislation	B.26.a. B.26.b.(1)-(4)
Lobbying	The cost of certain influencing activities associated with obtaining grants, contracts, cooperative agreements, or loans		Always unallowable Note: Lobbying with respect to certain grants, contracts, cooperative agreements, and loans may be allowed. See Circular A-87	B.27.
Maintenance, operation, and repairs (Other Expenditures)	The cost of utilities, insurance, security, janitorial services, elevator service, upkeep of grounds, necessary maintenance, normal repairs and alterations, and the like	Allowable subject to conditions listed in Circular A-87		B.28.
Materials and supplies (Administrative)		Always - at actual purchase price after all deductions or at cost if taken from stock. Incoming transportation charges are included		B.29.
Memberships, subscriptions, and professional activities (Other Expenditures)		Usually allowable	Costs of membership in organizations substantially engaged in lobbying	B.30.a.-e.
Motor pools (Other Expenditures)	Costs of a service organization which provides automobiles to user governmental units at a mileage or fixed rate and/or provides vehicle maintenance, inspection, and repair services	Always allowable		B.31.
Pre-award costs (Apply to Category)	Those incurred prior to the effective date of the award directly pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply with the proposed delivery schedule or period of performance	Allowable only to the extent that they would have been allowable if incurred after the date of the award and only with the written approval of the awarding agency		B.32.
Professional service costs (Design Engineering, Construction, Legal, and/or Project Planning)	Cost of professional and consultant services, including retainer fees, rendered by person or organizations that are members of a particular profession or posses a special skill	Allowable when reasonable in relation to the services rendered and when not contingent upon recovery of the costs from the Federal Government		B.33.a. B.33.b.
Proposal costs (Project Planning)	Costs of preparing proposals for potential Federal awards	Always allowable - should normally be treated as indirect costs; however, may be charged to Federal awards with prior approval		B.34.
Publication & printing costs (Other Expenditures)	See Circular A-87 for definitions of costs covered in this section	Always allowable		B.35.
Rearrangements and alterations (Other Expenditures)	Costs incurred for ordinary and normal rearrangement and alteration of facilities Special arrangements and alterations costs incurred specifically for a Federal award	Always allowable Allowable with prior approval of the Federal awarding agency		B.36.
Reconversion costs (Other Expenditures)	Costs incurred in the restoration or rehabilitation of the governmental unit’s facilities to approximately the same condition existing immediately prior to commencement of Federal awards, less costs related to normal wear and tear	Allowable		B.37.
Rental costs (Other Expenditures)		Subject to limitations described in Circular A-87 and to the extent that rates are reasonable		B.38.a.-d.
Taxes (Other Expenditures)		Allowable subject to limitations and restrictions listed in Circular A-87		B.39.a.-c.
Training (Other Expenditures)	The cost of training provided for employee development	Always allowable		B.40.
Travel costs (Administrative or Project Planning)	Transportation, lodging, subsistence, and related items incurred by employees traveling on official business	Allowable subject to conditions described in Circular A-87		B.41.a.-d.
Underrecovery of costs under Federal agreements	Any excess costs over the Federal contribution under one award agreement		Always unallowable under other award agreements	B.42.

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The Rouge River National Wet Weather Demonstration Project is funded, in part, by the United States Environmental Protection Agency (EPA) Grants #XP995743-01, -02, -03, -04, -05, -06, -08 and C-264000-01.