Allowable Cost

Allowable cost

For a particular cost to be allowed, it must be an excess cost of providing special education and related services. Only allowed costs may be charged to the flow-through or preschool entitlement grants.

When determining whether a cost is an excess cost, ask the following guiding questions:

In the absence of special education needs, would this cost exist?

If the answer is…

No, then the cost is an excess cost and may be eligible.

Yes, then the cost is not an excess cost and is not allowed.

Is this cost also generated by students without disabilities?

If the answer is…

No, then the cost is an excess cost and may be eligible.

Yes, then the cost is not an excess cost and is not allowed.

If it is a child-specific service, is the service documented in the student’s IEP?

If the answer is…

Yes, then the cost is an excess cost and may be eligible.

No, then the cost is not an excess cost and is not allowed.

For a particular cost to be allowed, it must also be necessary and reasonable for the proper and efficient performance and administration of the grant. A cost is reasonable if it does not exceed what a district would normally incur in the absence of federal funds. Additional guidance about standards for determining costs for federal grants is available from the Office of Management and Budget (OMB) Uniform Grants Guidance (2 CFR, Part 200).

The salaries and wages of any employee charged to a Federal grant, including IDEA, must be supported by some form of time and effort documentation that accurately reflects the work performed and supports the amount claimed against the grant. “Standards for Documentation of Personnel Expenses” are set forth by the Office of Management and Budget (2 CFR § 200.430(i)).

Allowable Costs for IDEA Entitlement Grants - Guidance document

USFR links for Districts and Charters

Revised Page 3/3/2026