Circular A-122: Navigating Cost Principles With Federal Grants

Ascertaining Whether Rent, Personnel and Other Costs Charged to Grants are Allowable

Recording of a 110-minute CPE webinar with Q&A

Conducted on Tuesday, November 22, 2011

Recorded event now available

or call 1-800-926-7926

The teleconference will provide advisors to non-profits with a review of the material terms of OMB Circular A-122 and the practical realities of evaluating whether a particular cost can be charged to the government agency awarding the grant.


Figuring out which direct and indirect costs can legitimately be charged to a federal grant or contract, and which must be absorbed, is one of the biggest challenges faced by a non-profit organization and its advisors. Intimate familiarity with OMB Circular A-122 and its practical applications is essential.

Beyond grasping the cost principles and details of 50-plus separate costs in Circular A-122, it is vital to anticipate challenges often faced by others in the non-profit world. For example, how should related-party rent be handled? What cost allocation and pooling methodologies are fair and reasonable?

Non-profits and advisors must avoid ramifications of attempting to charge unallowable costs to federal grants and programs. This seminar will offer an in-depth review of the terms of Circular A-122 and peer experiences in confronting the complex decisions and processes with assigning costs.

Listen as our panel of experienced consultants to non-profits helps prepare you to better answer whether certain costs can be charged to a federal grant or contract.



  1. Material terms of Circular A-122
    1. Basic considerations
    2. Direct and indirect costs
      1. Specific cost items considered
    3. Allocation of indirect costs
    4. Determination, negotiation and approval of indirect cost rates
  2. Approaches to document costs under Circular A-122
  3. Key current challenges with NPO cost decisions
    1. Related-party rent
    2. Appropriate cost allocation methodologies
    3. Indirect cost pools


The panel will explore these and other relevant issues:

  • Unique costs and cost principles for non-profits as explained under Circular A-122.
  • Steps to document those costs.
  • Problematic aspects and issues, such as related-party rent, program personnel knowledge of Circular A-122, and reasonableness of a cost allocation approach.
  • General approaches to pool or segregate direct and indirect costs.

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Anne Worrell Beech
Anne Worrell Beech

A. Worrell Beech

Her consulting firm provides financial data services to government contractors and other small and medium-sized...  |  Read More

Paul Calabrese
Paul Calabrese

Senior Manager
Rubino & McGeehin

He provides accounting and consulting services to not-for-profit and government contracting clients and has...  |  Read More

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