# Cost Principles for Grants Course (Self-Paced)

Canonical URL: <https://training.sdfm.org/courses/cost-principles-for-grants-course-self-paced>

## Overview

This course drills into Subpart E of 2 CFR 200 to give participants a practical command of cost allowability, allocability, and reasonableness. Through targeted discussion and hands-on cases, learners practice applying selected item rules, documenting judgments, and preparing for audits.

By the end, participants will be able to summarize key cost principles; distinguish direct and indirect costs; evaluate selected items of cost; and prescribe documentation and internal control practices that withstand audit scrutiny.

Best for program, finance, and grants staff who review budgets, process payments, or monitor recipient costs and need to make consistent, defensible allowability decisions.

## What you'll learn

- Summarize the core cost principles of allowability, allocability, and reasonableness.
- Distinguish between direct and indirect costs within federal grant budgets.
- Evaluate selected items of cost under Subpart E of 2 CFR 200.
- Apply documentation practices that support consistent and defensible cost decisions.
- Prescribe internal control measures to ensure compliance and audit readiness.
- Practice applying cost principles through targeted discussions and case-based exercises.

## Curriculum

#### Module 1: Allowability, Allocability, and Reasonableness

- Apply the core tests for compliant costs under Subpart E.
- Differentiate direct vs. indirect costs and consistency rules.
- Document cost decisions and justifications.

#### Module 2: Selected Items of Cost

- Review high-risk cost categories and their specific rules.
- Practice assessing gray-area items using policy references.
- Develop defensible rationales for approvals/denials.

#### Module 3: Indirect (F&A) Costs and Rate Considerations

- Understand indirect cost proposals, rates, and de minimis options.
- Coordinate with cognizant agencies and apply caps/limitations.
- Tie rate decisions to budgeting and monitoring.

#### Module 4: Documentation, Internal Controls, and Testing

- Establish documentation standards that satisfy auditors.
- Test internal controls for cost compliance and accuracy.
- Prepare for desk reviews and Single Audit testing.

#### Module 5: Practical Scenarios and Case Exercises

- Analyze sample transactions for compliance with Subpart E.
- Resolve common edge cases and conflicting guidance.
- Draft corrective actions for improper cost findings.

## Pricing

**Tuition:** $1050