Is the “cost of borrowing” an allowable grant reimbursement expense?
Date Published: January 2018
No, the “cost of borrowing” is not an allowable grant expense. As indicated in the OMB Uniform Guidance section §200.449 (Interest) “(a) General. Costs incurred for interest on borrowed capital, temporary use of endowment funds, or the use of the non-Federal entity's own funds, however represented, are unallowable.”