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(i.e., usually 12) that the building is in service for monthly amounts. Outflows consist of <br />initial equity contributions, debt principal payments (less the pro rata share attributable to the <br />unallowable costs of land) and interest payments. Where cumulative inflows exceed <br />cumulative outflows, interest shall be calculated on the excess inflows for that period and be <br />treated as a reduction to allowable interest cost. The rate of interest to be used to compute <br />earnings on excess cash flows shall be the three-month Treasury bill closing rate as of the last <br />business day of that month. <br />(5) Interest attributable to fully depreciated assets is unallowable. <br />24.Lobbying. <br />a.General.The cost of certain influencing activities associated with obtaining grants, contracts, <br />cooperative agreements, or loans is an unallowable cost. Lobbying with respect to certain grants, <br />contracts, cooperative agreements, and loans shall be governed by the common rule, "New <br />Restrictions on Lobbying" published at 55 FR 6736 (February 26, 1990), including definitions, <br />and the Office of Management and Budget "Government-wide Guidance for New Restrictions on <br />Lobbying" and notices published at 54 FR 52306 (December 20, 1989), 55 FR 24540 (June 15, <br />1990), and 57 FR 1772 (January 15, 1992), respectively. <br />b. Executive lobbying costs.Costs incurred in attempting to improperly influence either directly <br />or indirectly, an employee or officer of the Executive Branch of the Federal Government to give <br />consideration or to act regarding a sponsored agreement or a regulatory matter are unallowable. <br />Improper influence means any influence that induces or tends to induce a Federal employee or <br />officer to give consideration or to act regarding a federally-sponsored agreement or regulatory <br />matter on any basis other than the merits of the matter. <br />25.Maintenance, operations, and repairs. Unless prohibited by law, the cost of utilities, <br />insurance, security, janitorial services, elevator service, upkeep of grounds, necessary <br />maintenance, normal repairs and alterations, and the like are allowable to the extent that they: (1) <br />keep property (including Federal property, unless otherwise provided for) in an efficient <br />operating condition, (2) do not add to the permanent value of property or appreciably prolong its <br />intended life, and (3) are not otherwise included in rental or other charges for space. Costs which <br />add to the permanent value of property or appreciably prolong its intended life shall be treated as <br />capital expenditures (see sections 11 and 15). <br />26.Materials and supplies costs. <br />Materials and supplies costs. <br />26. <br />a. Costs incurred for materials, supplies, and fabricated parts necessary to carry out a Federal <br />award are allowable. <br />b. Purchased materials and supplies shall be charged at their actual prices, net of applicable <br />credits. Withdrawals from general stores or stockrooms should be charged at their actual net <br />cost under any recognized method of pricing inventory withdrawals, consistently applied. <br />Incoming transportation charges are a proper part of materials and supplies costs. <br />32 <br /> <br />