Unallowable Costs

Unallowable costs are those expressly disallowed in an award or its solicitation, which was incorporated by reference in the award.

The cost principles also identify certain activities and specific items of cost as unallowable. However an award’s terms and conditions may identify specific costs as unallowable that would ordinarily be allowable under the cost principles or SU policy. Some examples include prohibitions on international travel, tuition, equipment.

Unallowable activities include:

  • Alumni activities
  • Organized fundraising
  • Lobbying
  • Commencement and Convocation
  • General public relations and alumni activities
  • Student activities such as intramural activities and student clubs
  • Managing investments solely to enhance income
  • Prosecuting claims against the federal government
  • Defending or prosecuting certain criminal, civil, or administrative proceedings
  • Housing and personal living expenses of University officers
  • Selling or marketing of goods and services (does not include selling goods or services internal to SU by any service centers)

Unallowable costs include:

  • Advertising (only certain types are allowable)
  • Alcoholic beverages
  • Entertainment
  • Fundraising or lobbying costs
  • Fines and penalties
  • Memorabilia or promotional materials
  • Relocation costs if employee resigns within 12 months
  • Certain recruitment costs, such as color advertising
  • Certain travel costs, such as first-class travel
  • Cash donations to other parties, such as donations to other universities
  • Interest payments, except certain interest specifically coded as paid to outside parties and authorized by SU
  • Membership in civic, community, and social organizations or in dining and country clubs
  • Goods or services for the personal use of employees, including automobiles
  • Insurance against defects in the University’s workmanship