Allowability - Case Study Number One Analysis

Dr. Greene would like to use funds from two sponsored projects to split the cost of his allowable equipment purchase – Project A and Project B.  Project A will receive a 75% benefit from this purchase.  Project B will receive a 25% benefit. Can Dr. Greene split the purchase, charging 50% to each grant?

No. In order to charge Project A and Project B 50% each of an item purchased, both projects must receive half the benefit or use of the item.  In this case, the amount charged to Project B does not equal the benefit received.

Exception:  where scientific equipment was specifically awarded on a single award that will benefit several awards, this type of allocation is not needed