For each kind of recipient, there is a set of Federal principles for
determining allowable costs. Allowability of costs shall be determined
in accordance with the cost principles applicable to the entity
incurring the costs. Thus, allowability of costs incurred by State,
local or federally-recognized Indian tribal governments is determined in
accordance with the provisions of OMB Circular A-87, ``Cost Principles
for State and Local Governments.'' The allowability of costs incurred by
non-profit organizations is determined in accordance with the provisions
of OMB Circular A-122, ``Cost Principles for Non-Profit Organizations.''
The allowability of costs incurred by institutions of higher education
is determined in accordance with the provisions of OMB Circular A-21,
``Cost Principles for Educational Institutions.'' The allowability of
costs incurred by hospitals is determined in accordance with the
provisions of Appendix E of 45 CFR part 74, ``Principles for Determining
Costs Applicable to Research and Development Under Grants and Contracts
with Hospitals.'' The allowability of costs incurred by commercial
organizations and those non-profit organizations listed in Attachment C
to Circular A-122 is determined in accordance with the provisions of the
Federal Acquisition Regulation (FAR) at 48 CFR part 31.
