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California Library Literacy Services: Allowable and Unallowable Expenses | November 2023 4
<br />time. However, a social lunch or refreshments offered during a non-working time
<br />or break during a longer training event is not an allowable CLLS cost.
<br />• Indirect Costs: Indirect costs or fiscal agent fees charged to the literacy program for
<br />payroll processing, accounting, facility space, utilities, etc. The amount budgeted may
<br />not be more than 10% of the subtotal for each budget column for your CLLS award(s)
<br />and local match(es). We understand the grantee agency often provides additional
<br />support for the literacy program in terms of space, utilities, materials, supplies, printing,
<br />communications, etc. These costs may be included in indirect, but the total may not
<br />exceed 10% of the budget column. These costs do not need to be itemized.
<br />Unallowable Expenses
<br />• Advertising and Public Relations: Costs of advertising and public relations at
<br />conventions, meetings, or other events, including displays, demonstrations, exhibits,
<br />meeting rooms, hospitality suites, and special facilities used in conjunction with shows
<br />and special events; and salaries of employees engaged in setting up and displaying
<br />exhibits, making demonstrations, and providing briefings are unallowable.
<br />• Building, Construction, and Renovation Costs: General library building, construction, or
<br />renovation costs are unallowable.
<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.
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