Advancement · Grants & Funding

Allowable, or not?
Decide before you charge it.

Run each cost through the general tests in the federal cost principles and the special rules that catch schools most often. The review records why the cost serves the award, what is still missing and the decision, so the answer is on file when the auditor asks.

Review a costWhat you get
$5one-time · every device you sign in on
Buy · $5

Included with Caveat Classroom and Whole-school licenses. Or get it in the Grant writer’s desk, $49 for 32 items.

Costs reviewed

The worked example is three made-up costs from a family engagement grant: a workshop dinner to ask about, a display bought with prior approval, and a staff lunch that goes to other funds. Reviews save on this device only.

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What you get

Advancement · Grants & Funding$5 · included with Classroom and Whole-school licenses

What you finish with
A review per cost with the award, period of performance, description, budget line, amount, date and purpose; seven general tests; the special rule that applies and whether prior approval is on file; a decision; flags for dates outside the period, the special rule, missing approval and a cleared cost that fails a test; totals reviewed and not cleared.
Who it is for
Grants managers, business officers, program directors and principals who approve spending on federal awards at schools, districts and nonprofits.
Format
Browser checklist with a saved review per cost. Prints a review, all reviews or a blank form; downloads a spreadsheet (.csv); exports and imports a file.
Access
$5 one-time, yours on every device you sign in on; the tool opens once you are signed in with it. Included with Caveat Classroom and Whole-school licenses. Also in the Grant writer’s desk ($49) and the Advancement Suite pass ($99), and 1 more bundle. Everything you type stays in this browser; nothing is sent to Caveat.
Where it lives
The Grants & Funding space in Caveat Advancement.
Support
Questions about access, an order or a correction: team@caveatacademic.com.

How to use it

  1. Enter the award’s period of performance once, then each cost as it comes up.
  2. Write one sentence on how the cost serves the award.
  3. Work through the general tests honestly; mark what is not met yet.
  4. Pick the special rule that applies and record any prior approval.
  5. Record the decision and print the review for the award file.

Review a cost

Sorting costs

Three bins for a costAllowableStaff time on the projectProgram suppliesParticipant meals*Needs approval firstEquipment, $10,000+ each*Participant supportBig budget changesUnallowableAlcoholFundraising, lobbyingParties and entertainment* when the award and your policies allow it, and with approval where the award requires itThree bins for a costAllowableStaff time on the projectProgram suppliesParticipant meals*Needs approval firstEquipment, $10,000+ each*Participant supportBig budget changesUnallowableAlcoholFundraising, lobbyingParties and entertainment* when the award and your policies allow it
Examples only: the award’s terms and your agency’s rules decide which bin a cost belongs in.

The general tests

The federal cost principles (2 CFR 200.403 to 200.405) say a cost must be necessary and reasonable, allocable to the award, within the award’s limits, treated consistently with other costs, determined under accepted accounting principles, not used to meet another award’s cost share, and adequately documented, and it must fall inside the period of performance.

The special rules

Selected items (2 CFR 200.420 to 200.476) settle specific costs: alcohol, fundraising and lobbying are unallowable; entertainment is unallowable unless approved for a program purpose; equipment and participant support costs often need prior approval. Since the 2024 revision the equipment threshold is $10,000 per item.

Sources

  1. Code of Federal Regulations, 2 CFR 200.403 (factors affecting allowability), 200.404 (reasonable costs) and 200.405 (allocable costs), (ecfr.gov).
  2. Code of Federal Regulations, 2 CFR 200.420 to 200.476, General provisions for selected items of cost, including 200.423 (alcohol), 200.438 (entertainment), 200.442 (fundraising), 200.450 (lobbying) and 200.456 (participant support).
  3. Office of Management and Budget. Guidance for Federal Financial Assistance, 89 Fed. Reg. 30046 (April 22, 2024): the 2024 revision, including the $10,000 equipment threshold.
  4. U.S. Department of Education. Uniform Guidance resources for grantees (ed.gov), on documentation and prior approval.

The worked example is made up. This checklist states the federal cost principles in general terms; the award’s terms, the agency and your auditor decide. It is not legal or accounting advice. Nothing you type is sent to Caveat. Support: team@caveatacademic.com.