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California Library Literacy Services: Allowable and Unallowable Expenses | August 2023 4 <br />• Contributions, Donations, Honorariums, and Stipends: Contributions and donations, <br />including cash, property, and services, that use grant funds and are made by grant <br />recipients to others, regardless of the recipient, are unallowable. <br />• Entertainment: Costs of entertainment, including amusement, diversion, and social <br />activities, and any costs directly associated with those, such as tickets to shows or sports <br />events, meals, lodging, rentals, transportation, and gratuities are unallowable. <br />• Food and Beverages: Costs of alcoholic beverages are unallowable. Food and beverage <br />purchases for volunteer recognition events and social activities are unallowable. We <br />encourage library literacy programs, where possible, to work with community partners <br />to obtain donations of food and beverages to support their literacy programs. <br />• Fundraising: Costs of organized fundraising, including financial campaigns, solicitation of <br />gifts and bequests, and similar expenses incurred to raise capital or to obtain <br />contributions, are unallowable. <br />• Furniture: General library furniture is unallowable. <br />• Lobbying: The cost of certain influencing activities associated with obtaining grants, <br />contracts, cooperative agreements, or loans, is unallowable. Costs of membership in <br />organizations substantially engaged in lobbying are unallowable. <br />• Unfunded Pension Liability: Unfunded pension liability is unallowable. <br />• Premiums, Prizes, Incentives, and Souvenirs: Costs of promotional items and <br />memorabilia, including models, gifts, and souvenirs, are unallowable. <br />• Travel: Out-of-state travel costs are unallowable. Local funds should be used for this <br />purpose. <br />Local Match Guidelines <br />Only costs that directly support CLLS programs and activities, specifically those that support the <br />direct learning experiences of CLLS enrolled learners, can be counted as part of a program’s <br />local matching costs for any CLLS program (adult literacy, family literacy, or ESL). Matching costs <br />must follow the CLLS Allowable and Unallowable Expenses guidelines. <br />Encumbrances and Interest on Grants <br />Encumbrances <br />California Library Literacy Services funds must be expended or encumbered by June 30 of the <br />fiscal year in which the funds are awarded. Encumbered funds must be spent by the following <br />December 31 within the calendar year.