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Part Two — Program Specific Information, Continued <br />Eligible Costs To be allowable under federal awards, costs must meet the criteria as stated in <br />OMB Circular No. A -87, Attachment A. <br />Eligible cost categories are as follows: <br />Personal Services <br />This includes salary, overtime, compensating <br />time off and associated fringe benefits. <br />Travel <br />Recipients must follow their own established <br />travel policy. If they have no established policy, <br />the must follow the state's travel policy. <br />Equipment <br />This is defined as property having a useful life of <br />more than one year and an acquisition cost of <br />$5,000 or more per unit. <br />Operating expenses <br />This includes all items not defined as equipment <br />such as printing, postage, communications, data <br />processing, etc. <br />Contractors /consultants <br />This includes funds allocated for contractual <br />a reements. <br />Pass through to locals <br />This includes the funds being passed through to <br />cities and/or other political entities. <br />Indirect Costs <br />Rate is based on what is included in the indirect <br />cost proposals approved by the cognizant federal <br />agency. <br />FY 06 EMPG Grant Guide for Local Government Page 19 of 51 10 <br />