Are indirect costs allowable under the LLEBG Program?
Indirect costs are NOT allowable under the LLEBG Program because they do not fit appropriately within the legislatively mandated purpose areas. Indirect costs are costs of an organization that are not readily assignable to a particular project, but are necessary to the operation of the organization and the performance of the project. The cost of operating and maintaining facilities, depreciation, and administrative salaries are examples of the types of costs that are usually treated as indirect. See Chapter 17 of the OJP Financial Guide for more information. • Can units of local government use LLEBG funds to pay for costs incurred in administering the grant? ANSWER: Units of local government cannot use LLEBG funds for costs incurred in administering the grant. • Can the State Administrative Agency (SAA) use LLEBG funds to pay for costs incurred in administering the grant? ANSWER: The SAA may use up to 3 percent of the total State award to pay for costs incurred in administering LLEBG f
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