# Cost Principles for Grants Course

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

## 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

- Apply 2 CFR 200 Subpart E to evaluate selected items of cost and determine whether costs are allowable, unallowable, or conditionally allowable.
- Analyze higher-risk cost categories, including travel, equipment, entertainment, meals, and training, using federal cost principles and sound compliance judgment.
- Identify the documentation, approvals, and internal controls needed to support selected cost decisions and maintain audit-ready records.
- Recommend corrective actions and stronger compliance practices when costs are improperly charged or insufficiently supported.

#### 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.
- Learn and implement decision tree tool for cost assessment (reasonableness → documentation → allowability → allocability)

#### 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.
- Complete four case studies: 
  - Unauthorized Equipment Purchase
  - Excessive Travel Expenses
  - Inaccurate Time Charges
  - Subrecipient Unsupported Costs

## Schedule
- Jul 23, 2026 – Jul 24, 2026 — Live Online
- Aug 20, 2026 – Aug 21, 2026 — Live Online
- Nov 3, 2026 – Nov 4, 2026 — Live Online

## Instructors

### Alan McCain — Curriculum Program Manager

Alan McCain is a retired combat veteran who served as both an Air Force enlisted member and a Navy officer. He brings over 30 years of experience spanning federal and commercial budgeting, auditing, programming, operations, global logistics support, supply chain and inventory management, as well as major IT acquisition.

 

He possesses extensive, hands-on budget and audit experience across Federal, State, and Local government operations, including work within the Executive Office of the President and the Departments of State, Defense, Homeland Security, Health and Human Services, Housing and Urban Development, and Education, as well as the Office of the Mayor of Washington, D.C., among others.

 

Alan’s consulting background includes strategic planning and business development with the District of Columbia government, multiple federal agencies, Lockheed Martin, KPMG, and PricewaterhouseCoopers. He is a Certified Government/Defense Financial Manager (CGFM/DFM), holds a Teaching Certification from Harvard University’s Bok Center for Teaching and Learning, and earned an Executive MBA in International Business from The George Washington University.

## Pricing

**Tuition:** $1050