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4/13/76 AC 150/5100-10A Appendix 4 APPENDIX 4. FEDERAL AVIATION REGULATIONS, PART 152, AIRPORT AID PROGRAM, APPENDIX J, PRINCIPLES FOR DETERMINING COSTS APPLICABLE TO GRANTS AND CONTRACTS WITH STATE AND LOCAL GOVERNMENTS APPENDIX J There is set forth below principles for de- termining costs applicable to grants and con- tracts with State and local governments under the Airport and Airway Development Act of 1970: PRINCIPLES FOR DETERMINING COSTS APPLICABLE TO GRANTS AND CONTRACTS WITH STATE AND LOCAL GOVERNMENTS PART I —GENERAL. A. Purpose and scope. 1. Objectives. This Appendix sets forth principles for determining the allowable costs of programs administered by State and local governments under grants from and contracts with the Federal Government. The principles are for the purpose of cost determination and are not intended to identify the circumstances or dictate the extent of Federal and State or local participation in the financing of a par- ticular grant. They are designed to provide that federally assisted programs bear their fair share of costs recognized under these principles, except where restricted or pro- hibited by law. No provision for profit or other increment above cost is intended. Under § 152.47, indirect costs are not allowable costs for Airport Development Projects. 2. Policy guides. The application of these principles is based on the fundamental prem- ises that: a. State and Local governments are re- sponsible for the efficient and effective ad- ministration of grant and contract programs through the application of sound manage- ment practices. b. The grantee or contractor assumes the responsibility for seeing that Federally as- sisted program funds have been expended and accounted for consistent with underly- ing agreements and program objectives. c. Each grantee or contractor organiza- tion, in recognition of its own unique com- bination of staff facilities and experience, will have the primary responsibility for employing whatever form of organization and management techniques may be neces- sary to assure proper and efficient adminis- tration. 3. Application. These principles are ap- plicable in determining costs incurred by State and local governments under Federal grants and cost reimbursement type contracts (in- cluding subgrants and subcontracts) under the Airport and Airway Development Act of 1970. B. Definitions. 1. Approval or authorization of the grantor Federal agency means documentation evidenc- ing consent prior to incurring specific cost. 2. Cost allocation plan means the documen- tation identifying, accumulating, and distrib- uting allowable costs under grants and contracts together with the allocation methods used. 3. Cost, as used herein, means cost as deter- mined on a cash, accrual, or other basis accept- able to the Federal grantor agency as a discharge of the grantee's accountability for Federal funds. 4. Cost objective means a pool, center, or area established for the accumulation of cost. Such areas include organizational units, func- tions, objects or items of expense, as well as ultimate cost objectives including specific grants, projects, contracts, and other activities. 5. Federal agency means the Federal Avia- tion Administration. 6. Grant means an agreement between the Federal Government and a State or local gov- Page 1