Examples of Unallowable Costs

Costs that are specifically designated as unallowable costs by OMB Uniform Guidance include:

• advertising expenses except for employee and subject recruitment
• alcoholic beverages
• alumni activities
• bad debts
• commencement and convocation costs
• contingency provision costs
• certain defense and prosecution of criminal and civil proceedings
• entertainment costs
• certain fines and penalties
• goods and services for personal use
• housing and personal living expenses for officers of the institution
• insurance against defective work
• interest, fund raising, and investment costs (excluding third party interest expenses)
• lobbying costs
• malpractice insurance that does not involve human subjects
• membership in any civic or community organization, country club, social or dining club
• public relations costs
• selling and marketing costs
• student activity costs
• travel/subsistence costs of trustees