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Attachment A FY05 HOMELAND SECURITY GRANT PROGRAM programs and activities. Reasonable costs associated with providing meaningful access for LEP individuals are considered allowable program costs. For additional information, please see http: / /www.lep.gov. Guidance C. Allowable Costs HSGP allowable costs are divided into planning, organization, equipment, training, and exercises categories. In addition, M &A costs are allowable and certain operational costs under UASI and LETPP are also allowable. Specific focus for each program'sK allowable costs is included in the program's respective section of this solicitation. i Examples of allowable costs and activities can be found in Appendix A: Authorized; z Program Expenditures. The following provides general HSGP allowable costs ;. guidance: All programs within HSGP have allowable M&A costs for both the state -level as well as the local unit of government, urban area, or designated subgrantee. SHSP, UASI, LETPP, CCP, MRS: No more than 3% of the total amount allocated to the state for each program within HSGP may be retained at the state level and used for M &A purposes. These state M &A funds must be included in the total funds retained by the state. In addition, local jurisdiction subgrantees may retain and use up to 2.5% of their subaward from the state for local M&A purposes. Note: M&A costs are not allowed for either the state or designated recipients for UASI allocations to nonprofit organizations. • EMPG: The state EMA may use up to 3% of the state's EMPG allocation for M &A purposes. If the SAA is not the EMA, the SAA is not eligible to retain funds for M &A. In addition, local jurisdiction subgrantees may retain and use up to 2.5% of their subaward from the state for local M&A purposes. Operational Costs Guidance Under UASI and LETPP, funds may be used to support select operational activities. LETPP: State and local jurisdictions may use up to 25% of FY05 LETPP funds to support operational overtime costs incurred at Code Orange alert that are associated with increased security measures at critical infrastructure sites.10 • UASI: States and local jurisdictions may use up to 25% of FY05 UASI funds to support operational overtime costs associated with increased security measures at critical infrastructure sites in UASI jurisdictions. 10 There are additional operational activities allowed under LETPP that are subject to and part of the same 25% cap. See LETPP Operational Activities on page 75 for additional information. DEPARTMENT OF HOMELAND SECURITY I OFFICE FOR DOMESTIC PREPAREDNESS 25