Multifamily Housing Program Financial Management Toolkit

Knowledge Check – Allowable Costs

Select the appropriate response to complete the statement and then, select the Submit button.

1. To be classified as allowable, the cost must be determined to be ordinary and necessary to sustain the organization’s operation, deliver activities, and maintain performance.

True
False

2. To be allowably charged to a HUD grant, a cost must meet all of the following requirements EXCEPT:

A. Undertaken in a period covered by an audit compliant with 2 CFR Subpart F - Audit Requirements (§200.500-§200.521).
B. Determined to be reasonable, allocable, and in conformance with the provisions in 2 CFR 230 for nonprofit organizations and 2 CFR 225 for governmental organizations.
C. Documented adequately.
D. Included within the description of eligible activities in the relevant program regulations.