SECTION 190.38. Unallowable Costs

(a) Grant funds may not be used for the following:

(1) Salary and fringe benefits;

(A) The grantee may not use grant funds to pay any portion of the salary for a distinguished researcher or other personnel, other than a one-time salary supplement as described in §190.31 of these rules.

(B) "Fringe benefits" is defined as allowances and services provided by the grantee to its employees as compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave, employee insurance, pensions, and unemployment benefit plans.

(C) The grantee may not use grant funds to pay any portion of the salary, fringe benefits, or any other compensation for an elected government official.

(2) Costs to recruit an ineligible researcher;

(3) Costs related to entertainment, amusements, or social activities, including, but not limited to, shows, exhibitions, or sporting events;

(4) Professional dues, memberships, or lobbying;

(5) Honoraria or gifts;

(6) Purchase or lease of vehicles;

(7) Promotional items or recreational activities;

(8) Travel that is unrelated to the direct support of the grant project;

(9) Consultants or vendors who participate directly in writing a grant application;

(10) Professional association fees, dues or memberships; and

(11) Unallowable costs set forth in state or federal cost principles, the grant application, or the grant agreement.

(b) Grant funds may not be used to purchase any other products or services the OOG identifies as inappropriate or unallowable within the grant application, or during the grant management processes and procedures.

Source Note: The provisions of this §190.38 adopted to be effective February 4, 2016, 41 TexReg 776; amended to be effective July 14, 2022, 47 TexReg 3971