1. Allowable Expenses
Program funds must be used solely for activities that directly support the purpose, priorities, and expected outcomes of the program during the award period. All expenditures must be consistent with the approved application as well as applicable state and federal laws, regulations, and guidance.
Eligible providers accept the responsibility of using the fiscal control and fund accounting procedures that will ensure the proper disbursement of and accounting for federal funds. Applicable federal regulations are included in 2CFR200 (Code of Federal Requirements) in the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards.

2. Factors Affecting Cost Allowability
All costs must be:
Reasonable: incurred by a prudent person, and necessary for the performance of the project.
Allocable: charged only in proportion to the value or benefits received by the program.
Authorized: federal, state, and local laws and regulations.
Adequately documented.

3. Allowable AEFLA Costs Audit Services
Costs to recover improper payments
Compensation – personal services and fringe benefits
Depreciation
Employee health/welfare
Equipment
Insurance/indemnification
Intellectual property
Maintenance/repair
Materials/Supplies/Computers
Membership/subscription
Professional service cost
Publication and printing
Recruiting costs
Rental cost of property/equipment
Specialized service facilities
Training and Education costs
Transportation costs
Travel costs

4. NOT Allowable AEFLA Costs
Advisory Councils
Alcohol/Food
Bad Debts
Contributions
Entertainment
Fines/penalties
Fundraising
Goods or services of personal use
Interest
Lobbying
Organization costs
Selling and marketing costs
Student activity costs

5. SOMETIMES/LIMITED Allowable AEFLA Costs
Advertising
Conferences
Taxes
This is not an exhaustive list. Refer to the Uniform Guidance 2 CFR 200 for details.

6. Common Budget ConsiderationsNO
Gifts or items that appear to be gifts are not allowable. Souvenirs, memorabilia, or agency promotional items, such as T-shirts, caps, tote bags, etc., are not allowable.
YES
Minimal cost certificates or instructionally-related items to be used in the classroom, such as pens/pencils or flash drives are acceptable awards for recognition or incentives for participation in program activities.
"Door prizes," movie tickets, gift certificates, passes to amusement parks, etc., may not be purchased with grant funds
but may be donated by others

7. More Budget Considerations
YES
Bus passes are allowable, very minimally. The purpose must be only for Aspire-related instruction. For example, a monthly bus pass would not be acceptable because the student could use it for multiple purposes. A one-day bus pass may be acceptable to provide transportation to class while the student’s car is being repaired, for example. NO
Food, snacks, beverages, caps and gowns, decorations, and entertainment for graduation and recognitions events are not allowable costs.
Aspire funds may not be used to pay for an individual’s HSE test (practice test is OK) nor can funds be used to pay for the proctoring of HSE tests.