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27 2. Allowable/Unallowable Expenses Federal funds may be used for expenses or costs that would not have been incurred but for the TCE program. Expenses are only allowable if they are reasonable expenses or costs. Reimbursement should be for direct, reasonable and prudent expenses incurred as part of volunteer service or as part of the grant recipient’s overhead according to guidelines stated in the Cooperative Agreement. Indirect cost expenditures are not allowable. Grant funds may be used to reimburse volunteers for out-of-pocket expenses including transportation, meals and other expenses incurred by them in providing tax counseling assistance at locations convenient to the taxpayers. In addition to volunteer out-of-pocket expenses, funds may be used by the grant recipient organization for salaries, wages, and benefits of personnel that provide administrative or database support; or technical personnel responsible for providing support for electronic filing for the TCE program, (i.e. maintenance of equipment). The salaries, wages and benefits of these individuals may be paid under the grant for any time period that they spend their time working on TCE. Reimbursements may be made to volunteers for actual expenses incurred or stipends provided to volunteers. Either method is permitted and both stipends and actual reimbursements can be used by a grant recipient simultaneously as long as records are kept on both and the total is reported. Please note: Stipends must be designated on the expected out-of-pocket expenses, rather than the time engaged in volunteer service. In order for stipends to be an allowable expense, the grant recipient must have a written stipend policy in place and must provide the stipends in accordance with this policy. While a grant recipient may provide both stipends and reimbursements for actual expenses, the grant recipient may not provide both a reimbursement of actual costs and a stipend in lieu of reimbursement for the same expense. For example, if a volunteer receives a stipend to cover the estimated costs of traveling to the site, the volunteer may not also receive reimbursement for the actual cost incurred traveling to the site. In addition, office or site supplies that are needed to aid the volunteers or taxpayers during tax assistance are allowable expenditures using grant funds, as well as; printing and postage costs; installation of telephone lines necessary for offering electronic filing and/or to service a telephone answering site; Internet connectivity charges to facilitate offering efile services, rent, utilities, and custodial services when necessary; and costs for interpreter services. Organizations may include the cost of food provided for volunteers at TCE sites. It is an allowable expense as long as the purchase meets all OMB established criteria (necessary, reasonable, allocable, and allowable). It must be incurred solely in support of the program. Total expenses for food may not exceed $500 per grant year. Purchase of food for customers is not allowed because it is not in support of the program. A reasonable proposal that includes this expense considers the number of volunteers, days and hours the site operates, length of the site session and type of foods provided. The cost of foods purchased in conjunction with an event considered entertainment or social activity is not allowable. Projected budget for food needs to be included within the Proposed Budget Plan and under “Other” within the Form 8653, TCE Program Application Plan. Grant Recipients may use grant funds to purchase computer equipment (for example, computers and printers) for electronic filing purposes with a unit cost not to exceed $1,000. Note: If the grant recipient organization is not accepted into the TCE program for future awards please refer to 2 CFR 200.312 and 200.313 for guidance on the disposition of property purchased using federal funds. Site Management