Allowable and Non-Allowable Costs Guidance

3.21. General cost to government

For states, local governments, and Indian Tribes, the general costs of government are unallowable (except as provided in §200.474 Travel costs). 

Unallowable costs include: 

1. Salaries and expenses of the Office of the Governor of a state or the chief executive of a local government or the chief executive of an Indian tribe; 
   
2. Salaries and other expenses of a state legislature, tribal council, or similar 34 local governmental body, such as a county supervisor, city council, school board, etc., whether incurred for purposes of legislation or executive direction; 
   
3. Costs of the judicial branch of a government; 
   
4. Costs of prosecutorial activities unless treated as a direct cost to a specific program if authorized by statute or regulation (however, this does not preclude the allowability of other legal activities of the Attorney General as described in §200.435 Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements); and 
   
5. Costs of other general types of government services normally provided to the general public, such as fire and police, unless provided for as a direct cost under a program statute or regulation. (b) For Indian tribes and Councils of Governments (COGs) (see §200.64 Local government), up to 50% of salaries and expenses directly attributable to managing and operating Federal programs by the chief executive and his or her staff can be included in the indirect cost calculation without documentation.