List of Unallowable Costs for Federal Projects

The Office of Management and Budget (OMB) Circular A-21, Cost Principles for Educational Institutions

  1. Advertising
  2. Public Relations Costs
  3. Alcohol
  4. Alumni Activity Costs
  5. Bad Debts
  6. Local Civil Defense Project Costs not on Institution’s Premises
  7. Commencement and Convocation Costs
  8. Institution Furnished Automobile Costs for Personal Use
  9. Contingency Provision Costs
  10. Defense and Prosecution of Criminal and Civil Proceedings, Claims, Appeals and Patent Infringement Costs
  11. Depreciation Reserves Costs
  12. Donations or Contributions
  13. Entertainment Costs (include amusement, diversion and social activities)
  14. Executive Lobbying Costs
  15. Fines and Penalties (including late fees)
  16. Goods and Services for Personal Use
  17. Housing and Personal Living Costs
  18. Insurance Costs to Protect Against Defects in Institution’s Materials or Workmanship
  19. Interest, Fund-Raising and Investment Management Costs
  20. Lobbying Costs
  21. Losses on Other Sponsored Agreements
  22. Membership Costs in Civic Clubs, Community Organizations, Country Clubs, Social or Dining Clubs or Organizations
  23. Pre-agreement Costs Prior to Effective Date of Agreement
  24. Recruiting Costs for Help-Wanted Advertising
  25. Selling and Marketing Costs of Products or Services of the Institution
  26. Severance Costs in Excess of Institution’s Normal Severance Pay
  27. Specialized Service Facilities Charges in an amount more than Aggregate Costs of Service over a Long-Term Period
  28. Student Activity Costs
  29. Airfare Travel Costs in Excess of Lowest Available Commercial Discount Airfare or Customary Standard Coach Airfare


Additional information on unallowable costs can be found at:


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