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allowability of certain costs may require interpretation and judgment, local government <br /> personnel are encouraged to ask for assistance in making those determinations. <br /> GENERAL COST ALLOWABILITY CRITERIA <br /> All costs expended using ARP/CSLFRF funds must meet the following general criteria: <br /> 1. Be necessary and reasonable for the proper and efficient performance and <br /> administration of the grant programa <br /> A cost must be necessary to achieve a project object. When determining whether a cost is <br /> necessary, consideration may be given to: <br /> a) Whether the cost is needed for the proper and efficient performance of the grant <br /> project. <br /> b) Whether the cost is identified in the approved project budget or application. <br /> c) Whether the cost aligns with identified needs based on results and findings from a <br /> needs assessment. <br /> d) Whether the cost addresses project goals and objectives and is based on program <br /> data. <br /> A cost is reasonable if, in its nature and amount, it does not exceed that which would be <br /> incurred by a prudent person under the circumstances prevailing at the time the decision <br /> to incur the cost was made.2 For example, reasonable means that sound business practices <br /> were followed, and purchases were comparable to market prices. When determining <br /> reasonableness of a cost, consideration must be given to: <br /> e) Whether the cost is a type generally recognized as ordinary and necessary for the <br /> operation of the Lee County Government or the proper and efficient performance <br /> of the federal award. <br /> fj The restraints or requirements imposed by factors, such as: sound business <br /> practices; arm's-length bargaining; federal, state, and other laws and regulations; <br /> and terms and conditions of the ARP/CSLFRF award. <br /> g) Market prices for comparable goods or services for the geographic area. <br /> h) Whether individuals concerned acted with prudence in the circumstances <br /> considering their responsibilities to Lee County, its employees, the public at large, <br /> and the federal government. <br /> i) Whether Lee County significantly deviates from its established practices and <br /> policies regarding the incurrence of costs, which may unjustifiably increase the <br /> ARP/CSLFRF award's cost. <br /> '2 C.F.R OMB Guidance Subpart E,pg. 155,200.403(a) <br /> 22 C.F.R.OMB Guidance Subpart E,pg. 155,200.404 <br /> 5 <br />