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Someone told me that time and effort for proposal preparation cannot be legally charged to project budget accounts. Is that true?

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Someone told me that time and effort for proposal preparation cannot be legally charged to project budget accounts. Is that true?

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Yes, it is true. Time and effort and other costs associated with proposal preparation are not “allowed” direct costs, and thus cannot be legally charged to project budgets. They may be included in the F&A pool. See OMB Circular A-21 Section J. part 38.

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