Office of Management and Budget Circular A-122 states that, to be allowable under an award, costs must be reasonable for the performance of the award. A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs.
- Establish procedures and criteria for determining the reasonableness of costs charged by implementing partners.
Source: AUDIT REPORT NO. F-306-11-003-P JUNE 19, 2011
The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations. Please see the disclaimer of this site before using recommendations.
- Obligated Program Funds - ADS 202.3 - ADS 602.3
- Program Funding Plans - ADS 202.3.7 - FAR 16.306 (d)(1)
- Ensure That Costs Are Appropriate - ADS 596.3.1 - 634.3.2
- Financial Audits of Subrecipients Were Not Completed - ADS 5126.96.36.199
- Mission Could Not Determine Whether Food Storage and Distribution Costs Were Reasonable - ADS 596.3.1 - Food for Peace Act - Office of Management and Budget Circular A-122, “Cost Principles for Non-Profit Organizations,” Attachment A
- Contract Budgeting Did Not Align With Program Areas - ADS 200.3.2
- Project Funding Was Not Authorized - Title 22 Code of Federal Regulations (CFR) Part 226, Administration of Assistance Awards to U.S. Non-Governmental Organizations, section 226.25, Revision of Budget and Program Plans - (ADS) 303.3.18(a) - ADS 601.3.1