How can I determine if a cost is reasonable, allocable, allowable, and necessary?

Refer to the grant guidelines and award conditions for specific guidance on allowable costs and activities.  Additionally, sub-grantees must review the approved application to ensure that the requested changes are aligned with the purpose of the funds and the project scope. According to 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, a cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. A cost is allocable to a particular sponsored project if the goods or services involved are chargeable or assignable to the project in accordance with the relative benefits received. For more information on cost principles, allowable costs, etc. please refer to the grant program guidelines for the specific award or contact your assigned DCJS grant monitor.