b. Contract approval - Laserfiche WebLink

Origination Date 6/15/03 . Be determined in accordance with generally accepted accounting principles (GAAP) . . Not be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period. . Be adequately documented. OMS Circular A-87 Attachment A subsection C.2 thru C.4 further defines the terms: Reasonable - the cost must not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The cost must be ordinary and necessary for the operation of the organization or the performance of the award. Sound business practice, arms length bargaining and compliance with state and federal laws must be followed. Allocable - distrib\,jtable to a particular cost objective, such as a grant, contract, project, service or other activity, in accordance with the relative benefits received. Any cost allocable to a particular award or to the cost objective under these principles may not be shifted to other federal awards to overcome funding deficiencies, or to avoid restrictions imposed by law or by the terms of the award. Applicable Credits - receipts or reductions of expenditures which operate to offset or reduce expense items that are allocable to awards as direct or indirect costs. Typical examples of such transactions are: purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds, and adjustments of overpayments or erroneous charges. To the extent that such credits accruing or received by the organization relate to allowable cost, they shall be credited to the Federal Government either as a cost reduction or cash refund, as appropriate. Under any given award, the reasonableness an9 allocability of certain items of costs may be difficult to determine. This is particularly true in connection with organizations that receive a majority of their support from federal agencies. In order to avoid subsequent disallowance or dispute based on unreasonableness or nonallocability, it is often desirable to seek a written agreement with the cognizant or awarding agency in advance of the incurrence of special or unusual costs. Costs are allocated under two major categories defined as follows: Direct Costs - are those that can be identified specifically with a particular final cost objective, i.e., a particular award, project, service, or other direct activity of an organization. Typical examples include: Compensation of employees for the time devoted and identified specifically to the performance of the award, training, travel, and specialized equipment specifically required to carry out the award. Indirect Costs - are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective. Because of the 4