# Cost Principles for Grants Course

Canonical URL: <https://www.graduateschool.edu/courses/cost-principles-for-grants>

## Overview

This course drills into Subpart E of 2 CFR 200 to give participants a practical command of cost allowability, allocability, and reasonableness. Through targeted discussion and hands-on cases, learners practice applying selected item rules, documenting judgments, and preparing for audits.

By the end, participants will be able to summarize key cost principles; distinguish direct and indirect costs; evaluate selected items of cost; and prescribe documentation and internal control practices that withstand audit scrutiny.

Students should have prior experience in federal grants or financial management, including familiarity with direct and indirect cost concepts, budget review processes, and basic compliance or audit preparation practices.

## What you'll learn

- Apply the three core federal cost tests—allowability, allocability, and reasonableness—to actual financial transactions.
- Distinguish accurately between direct and indirect costs and apply consistency rules in classification.
- Interpret and apply federal requirements in 2 CFR 200 Subpart E and related guidance.
- Assess selected items of cost and determine when exceptions, restrictions, or special documentation apply.
- Develop defensible, audit-ready rationales for approving or denying questionable or gray-area costs.
- Understand how indirect cost rates are developed, negotiated, approved, and applied to budgets.
- Evaluate when to use the de minimis indirect cost rate and recognize its advantages and limitations.
- Identify key documentation required to support cost allowability and avoid common audit findings.
- Strengthen internal controls that support cost compliance, including approvals, segregation of duties, reconciliations, and monitoring.
- Prepare effectively for audit testing of cost principles, including organizing files, documenting methodologies, and identifying risks.
- Analyze real-world scenarios to develop corrective actions and preventive measures that improve ongoing compliance.

## Curriculum

#### Module 1: Allowability, Allocability, and Reasonableness

- Apply the core tests for compliant costs under Subpart E.
- Differentiate direct vs. indirect costs and consistency rules.
- Document cost decisions and justifications.

#### Module 2: Selected Items of Cost

- Apply 2 CFR 200 Subpart E to evaluate selected items of cost and determine whether costs are allowable, unallowable, or conditionally allowable.
- Analyze higher-risk cost categories, including travel, equipment, entertainment, meals, and training, using federal cost principles and sound compliance judgment.
- Identify the documentation, approvals, and internal controls needed to support selected cost decisions and maintain audit-ready records.
- Recommend corrective actions and stronger compliance practices when costs are improperly charged or insufficiently supported.

#### Module 3: Indirect (F&A) Costs and Rate Considerations

- Understand indirect cost proposals, rates, and de minimis options.
- Coordinate with cognizant agencies and apply caps/limitations.
- Tie rate decisions to budgeting and monitoring.
- Learn and implement decision tree tool for cost assessment (reasonableness → documentation → allowability → allocability)

#### Module 4: Documentation, Internal Controls, and Testing

- Establish documentation standards that satisfy auditors.
- Test internal controls for cost compliance and accuracy.
- Prepare for desk reviews and Single Audit testing.

#### Module 5: Practical Scenarios and Case Exercises

- Analyze sample transactions for compliance with Subpart E.
- Resolve common edge cases and conflicting guidance.
- Draft corrective actions for improper cost findings.
- Complete four case studies: 
  - Unauthorized Equipment Purchase
  - Excessive Travel Expenses
  - Inaccurate Time Charges
  - Subrecipient Unsupported Costs

## Schedule
- Jul 23, 2026 – Jul 24, 2026 — Live Online
- Aug 20, 2026 – Aug 21, 2026 — Live Online
- Nov 3, 2026 – Nov 4, 2026 — Live Online

## Instructors

### Seitu Stephens, J.D. — Instructor

Seitu I. Stephens, J.D., is a nationally recognized trainer and consultant in federal grants management, compliance, and program oversight. With more than two decades of experience working with federal, state, territorial, and nonprofit organizations, he specializes in helping agencies and grant recipients design, manage, and monitor federally funded programs in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200).

Mr. Stephens has trained hundreds of grant professionals across government agencies, community-based organizations, and institutions of higher education. His instruction focuses on practical strategies for managing federal awards, structuring and monitoring subawards, ensuring financial accountability, preparing for audits, and strengthening internal controls to protect federal funds and program outcomes.

He has developed and delivered numerous professional development courses on topics including grant program design, risk assessment, subrecipient monitoring, procurement under federal awards, and audit preparation. His courses combine regulatory expertise with real-world case studies that help participants translate complex federal requirements into effective operational practices.

In addition to his training work, Mr. Stephens advises organizations on strengthening grant management systems, improving compliance frameworks, and building sustainable partnerships between government agencies and community-based organizations.

Mr. Stephens holds a Juris Doctor degree and is widely respected for his engaging instructional style and his ability to make complex federal grant regulations clear, practical, and actionable for practitioners.

## Pricing

**Tuition:** $1050