The following costs are typically unallowable on sponsored projects as either direct costs or as part of the Facilities and Administrative (F&A, formerly known as indirect costs) rate. They must be identified by the BANNER Financial Information System (FIS) account code designated for those expenses.  Please contact your Post Award Team for additional guidance regarding unallowable costs.

1. Advertising, other than for help wanted or for the procurement of goods or services necessary for the performance of the award (e.g. human subjects);
2. Alcoholic beverages;
3. Bad Debt Expense;
4. Entertainment, unless specifically provided for in the award;
5. Fines and Penalties;
6. First class travel;
7. Goods and Services for personal use, such as automobiles;
8. Housing and personal living expenses for officers;
9. Internal interest expense;
10. Memberships in social, dining or country clubs.

In addition to the specific costs listed above, costs associated with the following activities are unallowable direct charges to sponsored projects. They must be identified and accounted for in funds specified for their purpose:

1. Alumni activities
2. Commencement and convocation costs
3. Executive and Legislative lobbying
4. Fund raising costs
5. Investment management costs
6. Losses on sponsored agreements
7. General Public Relations costs
8. Costs for prosecuting claims against the Federal government
9. Restricted fund overdrafts