CAH must ensure that all award funds are expended in a fiscally responsible manner. Allowable costs are those that District government and CAH have determined as valid expenditures, all awarded funds are subject to Risk Management and Performance Monitoring.
Examples of “Allowable Costs” Related to the Grant:
- Staff salaries of applicant organization.
- Teaching artists/humanists, or consultants.
- Travel and transportation directly related to the scope of the arts or humanities programming of the organization.
- Materials, supplies, and purchase of equipment directly related to the work of the organization.
- Overhead, maintenance and administration of the organization’s programs.
- Indirect Costs.
Operating Reserve: A percentage of the award may be used to create or expand a board- approved operating reserve fund. This percentage may change from one fiscal year to the next and will be determined by CAH at the beginning of each fiscal year. Grantees are not required to have an operating reserve in place prior to receiving the award but must submit a request to CAH before accepting the award. If an applicant has an operating reserve policy in place, the organization must be in good standing with its own policy. Applicants must present evidence of clearly articulates policies about the management of the reserve that have been formulated and ratified by its Board of Directors by the end of the grant period.
Examples of “Unallowable Costs” Related to the Grant:
- Food and beverages.
- Tuition and scholarships.
- Expenses associated with an organization assuming the role of a fiscal agent for another organization.
- Costs related to fundraisers, lobbying, and special events.
- Expenses unrelated to the execution of the organization’s scope of work.
- Funding to universities, foreign governments, or DC government agencies, including DCPS.
- Re-granting (also known as “sub-granting”).