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LCCMR Page 7
<br />Guidance on Allowable Expenses
<br />Eligible Expenses
<br />Eligible expenses are those expenses solely incurred
<br />through project activities that are directly related to and
<br />necessary for producing the project outcomes described in
<br />the proposal. All proposed expenses must be specified in
<br />the proposal submitted. Please note that for non -state
<br />entities all funds are awarded on a reimbursement basis,
<br />unless otherwise authorized, and all eligible expenses will
<br />need to be documented. Eligible expenses may include:
<br />a. Eligible expenditures incurred only after the effective
<br />date as approved by LCCMR.
<br />b. Wages and expenses of salaried Recipient employees if
<br />specified, documented, and approved. For State
<br />Agencies: use of unclassified staff only OR request
<br />approval for the use of classified staff accompanied by
<br />an explanation of how the agency will backfill that part
<br />of the classified staff salary proposed to be paid for
<br />with these funds. This is subject to specific discussion
<br />and approval by LCCMR.
<br />c. Fringe benefit expenses, such as FICA/Medicare,
<br />retirement, and health insurance of Recipient's
<br />employees, if specified.
<br />d. Professional and technical services specified in the
<br />approved Work Plan that are rendered by individuals or
<br />organizations not a part of the Recipient;
<br />e. Equipment, tools, materials, and supplies specific to
<br />the project and incoming freight charges for them.
<br />f. Capital expenditures for facilities, equipment, and other
<br />capital assets as expressly approved. For expenditures
<br />greater than $5,000, the Recipient must provide an
<br />explanation as to how all the equipment purchased
<br />with the appropriation will continue to be used for the
<br />same program through its useful life, or, if the use
<br />changes, a commitment to pay back to the
<br />Environment and Natural Resources Trust Fund an
<br />amount equal to either the cash value received or a
<br />residual value approved by the director of the LCCMR if
<br />it is not sold.
<br />Publication and printing/copying expenses necessary
<br />for contract administration, work products production,
<br />and semi-annual reports relating to accomplishments.
<br />h. In -state transportation and travel expenses such as
<br />lodging, meals, and mileage of personnel directly
<br />involved in the Project in the same manner and in no
<br />greater amount than provided for in the current
<br />"Commissioner's Plan" promulgated by the
<br />Commissioner of Management of Budget and as
<br />provided by LCCMR or, for University of Minnesota
<br />projects, the University of Minnesota plan. Allowable
<br />meal and lodging expenses are for employees only.
<br />Purchasing meals or providing lodging for others is not
<br />an allowable expense.
<br />g•
<br />Generally Ineligible Expenses —
<br />Unless Explicitly Approved
<br />Generally ineligible expenses for reimbursement mean all
<br />expenses not defined as eligible expenses, but for which an
<br />explicit exception can be sought from LCCMR if the expenses
<br />can be clearly justified and individually documented as directly
<br />related to and necessary for a project. No broad allocations for
<br />costs in either dollars or percentages are allowed. In deciding
<br />whether to seek exception for these costs consider that cash
<br />and in -kind leverage are criteria considered in proposal
<br />evaluation. Generally ineligible expenses include but are not
<br />limited to:
<br />a. General operations, overhead, and other indirect
<br />expenses, including office maintenance, office utility
<br />expenses, and office materials and supplies.
<br />b. Office rental fees (including storage space rental).
<br />c. Communication expenses incurred for telephone calls, web
<br />access, postage, and similar services.
<br />d. Insurance, except title insurance.
<br />e. Attorney fees, except to acquire and clear title to land.
<br />f. Purchase of communication devices such as pagers, cell
<br />phones, or smart phones.
<br />Purchase of computers, tablets, or audiovisual equipment.
<br />Generally available food and refreshments, except if
<br />explicitly approved for certain types of events.
<br />i. Conference attendance and associated costs and fees,
<br />except if to participate in formal presentation of project
<br />findings.
<br />j. Out of state transportation and travel expenses.
<br />k. Single -source contracts. Justification for an exception must
<br />also include the specific entity by name, why the single
<br />source is needed, and how the recipient is ensuring a
<br />competitive price for the contracted work.
<br />g•
<br />h.
<br />Prohibited Expenses
<br />Prohibited expenses for reimbursement mean all expenses
<br />indicated below, including but not limited to:
<br />a. Any expenses incurred before the project is authorized,
<br />before July 1, 2022, or before LCCMR work plan approval —
<br />whichever is latest.
<br />b. Fundraising.
<br />c. Taxes, except sales tax on goods and services.
<br />d. Lobbyists or political contributions.
<br />e. Advertising and marketing expenses.
<br />f. Loans, grants, or subsidies to persons or entities for
<br />development.
<br />g. Bad debts, late payment fees, finance charges, or
<br />contingency funds.
<br />h. Interest or investment management fees.
<br />i. Directors or officers salary.
<br />j. Merit awards and bonuses.
<br />k. Memberships (including subscriptions and dues).
<br />I. Publications, periodicals, and subscriptions.
<br />m. Employee workplace parking.
<br />n. Entertainment, decorations, gifts, and prizes.
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