8835.0290 Unallowable Expenses


Published: 2015

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8835.0290 UNALLOWABLE EXPENSES.


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Subpart 1.

Scope.

In determining the total operating costs of a public transit system, upon which financial assistance is based, the definitions of unallowable expenses in subparts 2 to 8 apply and have the meanings given them.


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Subp. 2.

General purpose equipment.

Expenditures for general purpose equipment are unallowable as operating costs. "General purpose equipment" means equipment that is used for other than transit contract purposes, such as communications equipment, office equipment and furnishings, air conditioning equipment, reproduction and printing equipment, and computers and related equipment.


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Subp. 3.

Interest and other financial costs.

Interest on borrowing (however represented), bond discounts, cost of financing and refinancing operations, and legal and professional fees paid in connection with these costs are unallowable.


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Subp. 4.

Fines and penalties.

Costs resulting from violations of, or failure to comply with federal, state, or local laws and regulations are unallowable.


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Subp. 5.

Contingencies.

Contributions to a contingency reserve or any similar provision for unseen events are unallowable.


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Subp. 6.

Bad debts.

Any losses arising from uncollectible accounts, other claims, and related costs are unallowable.


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Subp. 7.

Donations and entertainment expense.

Contributions and donations are unallowable as are any entertainment expenses.


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Subp. 8.

Unrelated costs.

Costs that are not directly related to the provision of public transit are unallowable.