Multifamily Housing Program Financial Management Toolkit

Introduction
1. Toolkit Overview
2. Building Blocks of Financial Management
3. Statutes, Federal Regulations, and OMB
- 3a. Implementation of the Omnibus Circular – 2 CFR Part 200
- 3b. Overview of 2 CFR Part 200: Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards
4. Accounting and Record Keeping
5. Fund Accounting and Cost Accounting Defined
6. Procurement
7. Reporting
8. Financial Audits
9. Basics of Cost Allocation
10. The Cost Allocation Process
11. Allocating Indirect Costs
12. Assisted Living Conversion
13. Congregate Housing Services
14. Section 811 Project Rent Assistance
15. Service Coordinators in Multifamily Housing
16. Support Services Demo for Elderly
Financial Management Webinars

9b. Reasonable Costs (§200.404)

Costs are considered ‘reasonable’ if they do not exceed what a prudent person would incur under similar circumstances. All costs must pass the ‘rational person’ test by meeting all of the following criteria:

The cost is would be recognized as ordinary and necessary for the operation of the organization and/or project.
The cost is in accordance with market prices for comparable goods or services as evidenced by cost estimates and documentation.
The individuals responsible for incurring the cost acted with prudence and for the benefit of the organization and its activities.
The cost has been incurred after following the established practices of the organization, in accordance with the terms and conditions of the award. (See Procurement requirements detailed in Section 6 of this Toolkit).

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