How is the reasonableness of a cost determined?
• The cost is of a type generally recognized as ordinary and necessary for operation of the organization or grant performance • The grantee acted in accordance with any restrictions or requirements imposed for generally accepted sound business practices, arms length bargaining, federal/state laws and regulations, and grant award terms and conditions • Market prices for goods and services are comparable • Individuals acted with prudence in the circumstances of responsibility to the organization, its members, employees, clients, the public, and federal government • There are no significant deviations from established practices of the organization which may unjustifiably increase grant costs
