Allowable costs are costs that can be paid by a provider’s contract or grant. A cost is allowable only if it meets the Reasonable, Necessary, Allowable, and Allocable guidelines detailed below.
Funds provided through the OPHE grants are subject to review and audit. Thus, providers must ensure their expenditures are permissible under the contract agreement and federal regulations. Providers must save all invoices, receipts, and proof of payments for all contract expenditures.
Guidelines for Allowable Costs
| GUIDELINE | MEANING | ALLOWABLE EXAMPLE |
|---|---|---|
| Reasonable | Costs are comparable to costs the agency has incurred for other programs and are similar to costs incurred by other agencies. | Marketing materials for a vaccine event are purchased at a fair market rate. |
| Necessary | Costs are incurred to fulfill the purpose of the award or costs that are vital to sustain the award’s operations. | Purchasing software needed for the data collection and accounting as required by the award. |
| Allowable | Costs are allowed under federal and state regulation (ex. Rider A of contract). | The cost is allowable per OPHE and federal guidance (2 CFR 200 Subpart E). |
| Allocable | The cost is directly tied to the activities of the award and the cost can be distributed to other beneficiaries. | Payroll expenses for employees working on multiple grants is proportionately shared by funding sources. |
Examples of allowable costs include the following:
- Personnel expenses for staff performing contract related activities
- Marketing materials for a vaccine pop-up event
- Purchasing software needed for data collection and accounting
- Purchasing supplies for vaccine events
- Professional services such as an accountant
- Client transportation
Please contact CDC-OPHE-Support@maine.gov or individual program contacts if you have any questions pertaining to allowable costs and activities.