6-20-22 BOC Regular Meeting - Laserfiche WebLink

Home Browse Search

c) Whether the cost aligns with identified needs based on results and findings from a needs assessment. d) Whether the cost addresses project goals and objectives and is based on program data. A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision to incur the cost was made.2 For example, reasonable means that sound business practices were followed, and purchases were comparable to market prices. When determining reasonableness of a cost, consideration must be given to: e) Whether the cost is a type generally recognized as ordinary and necessary for the operation of the Lee County Government or the proper and efficient performance of the federal award. f) The restraints or requirements imposed by factors, such as: sound business practices; arm's-length bargaining; federal, state, and other laws and regulations; and terms and conditions of the Federal award. g) Market prices for comparable goods or services for the geographic area. h) Whether individuals concerned acted with prudence in the circumstances considering their responsibilities to Lee County, its employees, the public at large, and the federal government. i) Whether Lee County significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award's cost. 2. Be allocable to the Federal award.3 A cost is allocable to the Federal award if the goods or services involved are chargeable or assignable to the Federal award in accordance with the relative benefit received. This means that the Federal grant program derived a benefit in proportion to the funds charged to the program. For example, if 50 percent of a local government program officer's salary is paid with grant funds, then the local government must document that the program officer spent at least 50 percent of his/her time on the grant program. If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit. If a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involved, then the costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Where the purchase of equipment or other capital asset is specifically authorized by the Federal award, the costs are assignable to the Federal award regardless of the use that 2 C.F.R. OMB Guidance Subpart E, pg. 155, 200.404 '2 C.F.R OMB Guidance Subpart E, pg. 156, 200.405 5