Allowable Cost Matrix

Allowable and Unallowable Expenditures by Fund Source

In general, purchases made by any fund should benefit the University's mission, support
University programs and should not be made for an individual's personal gain. Matrix should be
used to identify what funds are allowed to purchase items. Even if the fund source is marked
with a “Yes”, all purchases must be compliant with existing purchasing policies (e.g., competitive
bidding requirements, use of mandatory sources, P-Card prohibition on certain types of
purchases). This list is not intended to be all inclusive but represents some common
expenditures and restrictions. Account codes are provided as guidance for each type of
expense, when possible, but other accounts may also be considered as appropriate.

Allowable Cost Matrix

When in doubt…

When in doubt, accounting and finance staff should always stop to think about whether an
expense is appropriate for certain fund groups. To do this, the staff member may want to ask
himself/herself the following questions:

  • Is this an appropriate use of the particular resources or fund group (i.e., State,
    Sponsored, etc.)?
  • Am I comfortable explaining this charge to an auditor?
  • Am I comfortable explaining this charge to the public?
  • Is this expense reasonable? Would a prudent person have purchased this item and paid
    this price?
  • Is this expense "allocable"? Is the expense applicable to the project and fund group
    with a high degree of certainty?
  • Is this expense allowable? Does this expense fall within the general parameters of this
    particular fund group?
  • Is this consistent? Are other expenses for similar purposes treated in the same way?