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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.