Field Guide for Administering Library Services and Technology Act Grants

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Allowable Expenditures Federal grants, such as the LSTA grants, have limitations on what items and services may be purchased using grant funds. Some items and services are "allowable costs," meaning that they may be purchased using grant funds, while others are not. LSTA grant funds are to be used in alignment with the priorities of the LSTA program: Expanding services for learning Providing access to information to all users Developing a strong technology infrastructure Developing partnerships within the community Serving the underserved The following list includes some examples of the more common uses of grant funds and whether they are allowable or not allowable. More detailed information can be found in CFR 225, Appendix A, at the government Web site http://ecfr.gpoaccess.gov   Allowable Not allowable Advertising and Public Relations Advertising of positions or upcoming events related to the grant project. Advertising for general library usage. Audits Audits may be paid for with grant funds, if the auditors follow federal guidelines.   Books, CDs, DVDs, etc. Circulating materials as part of an LSTA project, or that relate to an approved LSTA project topic. Books, CDs, DVDs, etc., bought specifically to give away as prizes or promotions. Clothing Educational and informative clothing, e.g., costumes for story time. T-shirts with library advertising or slogans on them. Communications Telephone, mail, and postage related to the LSTA project.   Consulting Services Consultants to plan, implement, or evaluate a project. Lobbyists. Contributions, Donations Contributions and donations may be made to the grant recipient and may be used to meet matching requirements. Contributions or donations may not be made by the recipient using grant funds. Employees Salaries and benefits for employees who are working on LSTA projects.   Entertainment Musicians for a music project, storytellers for story time, etc. Tickets to movies, plays, sports events, etc.; transportation to outside activities. Exhibits Conference booths that highlight a project. Conference booths to publicize an organization, a library, or a library board. Expenses Employee office supplies and craft materials used for an LSTA project. General costs of government (e.g., police protection); fines, penalties, damages or settlements. Food Projects covering such subjects as nutrition, parenting, or wildlife might use grant funds to purchase food (e.g., seeds and nuts to make a bird feeder). Travel for grant projects also may reimburse for meals out of grant funds. Cookies and sodas served as "snack time" or food served at an entertainment; alcoholic beverages. Fundraising   Financial campaigns, solicitation of gifts, or throwing a benefit/fundraiser for the library. Honorariums, Stipends   Honorariums and stipends. An honorarium is an "honorary" payment in recognition of services for which it is not usual or not lawful to assign a fixed business price. It is in addition to hotel and travel reimbursement, and not the same as a speaker's fee. See also "Speakers' Fees." Lobbying or Advocacy   Any lobbying activities. Membership dues to an organization that engages in lobbying. Membership Fees Institutional membership dues to technical or professional organizations. Membership dues to an organization that engages in lobbying; personal memberships to any organization. Printing and Promotional Materials Posters, bookmarks, brochures, fliers, etc., to promote programs related to the LSTA priorities, such as literacy and summer reading. If political personalities, such as governors, mayors, etc., are featured on such items, these must be removed during their political campaigns. Souvenirs or gifts (e.g., mugs, mini notepads, message magnets, pencils) printed to publicize general library usage. Prizes   Door prizes, souvenirs, gifts, t-shirts, toys, games, tote bags, etc. Speakers' Fees A speaker's fee is a payment made to a person who charges a stipulated fee for services. It also can include hotel and travel reimbursement. Speaker's fees are sometimes called "honorariums" but are not the same as the federal definition of "honorarium."   Supplies Office supplies such as pencils, pens, notebooks, or binders used by employees while working on LSTA projects. Specially printed pens, pencils, binders, etc., promoting the library or general library use. Technology Hardware, software, and peripherals used in conjunction with an LSTA project.   Toys & Games Board games and manipulative toys to use during an LSTA project or as part of a lending collection related to an LSTA project. Toys or games used as prizes. Travel Travel to branch libraries as part of the LSTA project; must be reimbursed in accordance with the State of Florida rate. Vouchers or bus rental for a field trip. Training Training provided for employee development.   Web sites   Content of Web sites paid out of grant funding may not include material intended to influence legislators or local officials. For detailed information on both federal time tracking and allowable costs, see the Code of Federal Regulations, Title 2: Grants and Agreements, Chapter II: Office of Management and Budget Circulars and Guidance, Part 225: Cost Principles for State, Local and Indian Tribal Governments (OMB Circular A-87), Appendices A and B, which can be found at http://ecfr.gpoaccess.gov. Federal guidelines for allowable costs are outlined in three Office of Management and Budget (OMB) circulars, depending upon the type of organization. 2 CFR 225 (formerly OMB Circular A-87) Cost principles for State, Local and Indian Tribal Governments 2 CFR 230 (formerly OMB Circular A-122) Cost principles for Non-Profit Organizations 2 CFR 220 (formerly OMB Circular A-21) Cost principles for Educational Institutions The circulars are designed to provide a uniform approach for determining allowable and unallowable costs. In general there are 10 criteria for allowability: Necessary and reasonable for proper administration. Allowable according to Circular 2 CFR 225 (formerly OMB Circular A-87), 2 CFR 230 (formerly OMB Circular A-122),or 2 CFR 220 (formerly OMB Circular A-21) depending upon the type of organization. Be authorized or not prohibited under State or local laws. Conform to any Federal law limitations or terms of the award. Be consistent with policies, regulations and procedures that apply uniformly to both Federal awards and other activities of the organization. Be given consistent treatment. Agree with generally accepted accounting principles (GAAP). Are not used for matching requirements of any other Federal award. Be adequately documented. Be the net of all applicable credits.