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allocable thereto pursuant to program rules and regulations. <br />Costs must be incurred and work performed within the project <br />period with the exception of contractual planning costs, <br />Section 16D-5.28(6), Florida Administrative Code, specifically <br />identified within the project agreement. Costs must be net of <br />all applicable credits such as purchase discounts, allowances, <br />sales of scrap and income from incidental services. The follow- <br />ing paragraphs identify eligible and ineliqible costs for <br />reimbursement. <br />1. Contractual Services. <br />a. Eligible - Costs of work performed by private or <br />independbnt contractors that is directly related to the <br />accomplishment of the project for a project sponsor. <br />b. Ineligible - Costs for work performed by private or <br />independent contractors pursuant to cost plus or <br />contingency fee contracts includirj costs related to <br />obtaining program grant funds. <br />2. Material and Supplies. <br />a. Eligible - All costs of materials and supplies consumed <br />or expended in accomplishing the project including <br />direct purchases as well as withdrawals from the project <br />sponsor's stock. <br />b. Ineligible - Cost of small tools (shovels, saws, hammers <br />drills, etc•) and clothing or uniforms worn by employee <br />Operating expendablfe:3 or replacement parts purchased for <br />project sponsor owned equipment used on•the project. <br />3. Donated Services, Materials, Supplies, Equipment, or Pro2ert <br />It. Eligible - With written authorization by the Depart- <br />ment's project administrator, Office Chief or Division <br />Director, and Executive Director, as evidenced by the <br />project agreement, the fair market value of donated or <br />j purchased real property may be used in the program, <br />pursuant to Section 16D-5.24, Florida Administrative <br />jCode, as all or part of the project sponsor's obligation <br />i <br />The project agreement shall clearly specify the method <br />for which values will be assigned to the real property. <br />b. Ineligible - Values assigned to any donated property, <br />I <br />materials or services used in accomplishing the project <br />except for real property as noted above. <br />A _ rn-Kind Services <br />a. <br />Ineligible - Expenses incurred by project sponsors for <br />personnel employed or equipment owned and maintained by <br />project sponsors. <br />5. Employee Benefits, Travel and Indirect Costs. <br />a. Ineligible - Expenses incurred by project sponsors for <br />employee benefits (FICA, health insurance, worker's <br />May 14, 1982 <br />n-,..., 7 „c �., <br />