Addendum 1.3.1 - Allowable Cost by Line Item

Rev. FY 2022

ADDENDUM 1.3.1 ALLOWABLE COST BY LINE ITEM (pdf)

Listed below are items that may be included in MCH Programs' budgets, grouped by line item. This is not a complete list, but rather a sample of the types of items in each category. Allowable costs must be reasonable, necessary, and directly support the MCH program. Shared costs must be allowable costs and assigned to programs through a process of allocation.

Allowed by Program/s	Category	Allowable Cost	Not Allowed:
FCM HRIF/BBO	Personnel Services and Fringe Benefits	Personnel Services (salary of agency employees) and fringe benefits for staff working in the FCM, HRIF/HWIL, or BBO programs	Employee recognition programs and incentives
FCM HRIF/BBO	Travel	Program related travel costs (mileage, transportation, lodging, meals and per diem, agency vehicle costs) for meetings, training, in-service education, nutrition and breastfeeding task force events/meetings	Transportation for MCH Programs participants
FCM HRIF/BBO	Equipment Prior approval is required for items costing $5,000 or more	Equipment is defined as items costing $100 or more per unit, such as: Office & copy equipment Office furniture Medical equipment (stethoscope, blood pressure cuff) Reference and training materials and exhibits Computer hardware (including monitors, printers, modems) Computer software and computer supplies (word processing, spreadsheet, anti-virus applications)	Otoscope Laryngoscope Toothbrushes Exam tables Any equipment/supplies used for well-child exams
FCM HRIF/BBO	Supplies	Office supplies are defined as items (other than computer) costing less than $100 each, such as: Medical supplies (band aids, alcohol pads, bio-hazard waste containers, hemoglobin/hematocrit testing supplies) Client education materials Diapers Cleaning supplies Stationery and envelopes Photocopy paper, toner Postage, postal services, UPS, or other carrier costs ASQ, screening forms Items for distribution to clients who complete portions of the program (i.e. safe sleep kits, diapers) the number of items must be in alignment with the assigned caseload for the program.	Water coolers/bottled water Any supplies used for well-child exams, immunizations, and lead testing
FCM HRIF/BBO	Contractual Services	Contractual Employees (salary of contractual employees who work in the FCM, HRIF/HWIL or BBO programs) Contracts and leases which support program activities such as printing costs outside of agency	Billing services Staff and software for billing non-MCH programs services
FCM HRIF/BBO	Occupancy - Rent and Utilities	Rent or lease of space or property (prior approval from Department required for new sites/locations) Utility costs Insurance (building, fire, & theft) Building and ground maintenance
FCM HRIF/BBO	Telecommunications	Communications - telephone, internet, and answering services Repair, maintenance, and parts for communications
FCM HRIF/BBO	Other	Advertising costs Costs of subscriptions Membership fees License fees/renewals
FCM HRIF/BBO	Indirect Costs	Allowed in compliance with 2 CFR 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
FCM BBO	Grant Exclusive - Outreach¹	Outreach activities to promote the programs Business cards Flyers, books, brochures Staff time/salary Travel to perform outreach activities Advertisement costs	Food Incentives for clients enrolled in the program
BBO	Grant Exclusive - Transportation²	Costs for transportation for clients to attend appointments if unable to arrange transportation through MCOs.

¹Outreach activities cannot be greater than 10% of the overall grant amount.

²Transportation costs cannot be greater than 10% of the overall grant amount.