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e. Be consistent with policies, regulations, and procedures that apply uniformly to both Federal <br />awards and other activities of the governmental unit. <br />f. Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct <br />cost if any other cost incurred for the same purpose in like circumstances has been allocated to <br />the Federal award as an indirect cost. <br />g. Except as otherwise provided for in this Circular, be determined in accordance with generally <br />accepted accounting principles. <br />h. Not be included as a cost or used to meet cost sharing or matching requirements of any other <br />Federal award in either the current or a prior period, except as specifically provided by Federal <br />law or regulation. <br />i. Be the net of all applicable credits. <br />j. Be adequately documented. <br />2. Reasonable costs. A cost is reasonable if, in its nature and amount, it does not exceed that <br />which would be incurred by a prudent person under the circumstances prevailing at the time the <br />decision was made to incur the cost. The question of reasonableness is particularly important <br />when governmental units or components are predominately federally- funded. In determining <br />reasonableness of a given cost, consideration shall be given to: <br />a. Whether the cost is of a type generally recognized as ordinary and necessary for the operation <br />of the governmental unit or the performance of the Federal award. <br />b. The restraints or requirements imposed by such factors as: sound business practices; arms <br />length bargaining; Federal, State and other laws and regulations; and, terms and conditions of the <br />Federal award. <br />c. Market prices for comparable goods or services. <br />d. Whether the individuals concerned acted with prudence in the circumstances considering their <br />responsibilities to the governmental unit, its employees, the public at large, and the Federal <br />Government. <br />e. Significant deviations from the established practices of the governmental unit which may <br />unjustifiably increase the Federal award's cost. <br />3. Allocable costs. <br />a. A cost is allocable to a particular cost objective if the goods or services involved are <br />chargeable or assignable to such cost objective in accordance with relative benefits received. <br />b. All activities which benefit from the governmental unit's indirect cost, including unallowable <br />activities and services donated to the governmental unit by third parties, will receive an <br />9 <br /> <br />