Allowable and Non-Allowable Costs Guidance
Allowable and Non-Allowable Costs
3. Specific Cost Guidance by Category
3.28. Material and supplies costs
Ref: 2 CFR Part 200, §200.453.
Costs incurred for materials, supplies, and fabricated parts necessary to carry out a Federal award are allowable. Purchased materials and supplies must be charged at their actual prices, net of applicable credits. Withdrawals from general stores or stockrooms must be charged at their actual net cost under any recognized method of pricing inventory withdrawals, consistently applied. Incoming transportation charges are a proper part of materials and supplies costs.
Materials and supplies used for the performance of a Federal award may be charged as direct costs. In the specific case of computing devices, charging as direct costs is allowable for 35 devices that are essential and allocable, but not solely dedicated, to the performance of a Federal award.
Where federally-donated or furnished materials are used in performing the
Federal award, such materials will be used without charge. Consumable supplies are