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4/13/76 CHAPTER 6. ADMINISTRATIVE COSTS AC 150/5100-10A 60. DIRECT COSTS. Direct costs are those that can be identified specifically with a particular cost objective. Examples of such costs which are listed below may apply either to ADAP or PCP but not necessarily to both. a. Advertising. Cost of advertising for bids for materials, supplies, construction work, etc. Advertising and legal notices pertaining to the sale of bonds are not allowable project costs. b. Proiect Formulation Costs. This includes all costs incurred by a sponsor in preparing, filing, and documenting the project appli- cation, including such costs as preparing necessary surveys, and the cost of title examination. All incidental costs of land acquired or to be acquired under a grant agreement for landing aids such as cost of title search, title certification, condemnation, and court costs and recording costs are not considered project formulation costs but are considered part of land costs and are eligible for Federal participation at a higher rate. Costs relating to locating and designing, making surveys and maps, sinking test holes, and other work prior to construction should be reported as preliminary expenses rather than as administrative expense. c. Attorney Fees. Attorney fees, other than in connection with land acquisition, are classified as administrative costs. These costs normally are for legal services related to formulation of the project, preparation of contract and agreements, legal opinions, and legal advice associated with the project. If the project description does not contemplate land acquisition, the legal fees for title opinions required by FAA are classified as administrative costs. d. Abstract of Title. The project application provides for detail on property interest in land previously acquired. Title examination and any curative work necessary are administrative costs incurred in formulation of the project. If the project description does not include land acquisition, fees incurred for the title examination and related work are classified as administrative costs. e. Materials and Supplies. Materials and supplies used in the administration of the project are allowable if actual costs are established. Office supplies requisitioned from stock may be allowed provided the claim is predicated on actual cost. Items purchased specifically for the project will be allowed provided the quantity purchased is not in excess of the amount necessary for the project. f. Stenographic, Clerical and Accounting. Time devoted to the project by the sponsor's regular employees is an eligible project cost. Records must be maintained for the distribution of payroll time, showing actual time devoted to the project, and the type of work Chap 6 Par 60 Page 25