General Cost Principles (Video) (Course Id 2145)

• Who is this course for?
  This course is for anyone needing Continuing Professional Education (CPE), particularly CPAs, accountants, or auditors working with federal government grants.

• What is this course about or what problem does this course solve?
  The course addresses the rules and guidelines—known as general cost principles—that determine whether a cost is allowable under federal government grants.

• How can the knowledge from this course be used?
  Participants can use this knowledge to identify allowable costs, understand arms-length bargaining requirements, apply the Prudent Person Rule, and evaluate cost allocability in the context of federal awards.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding general cost principles is crucial for professionals auditing or managing federal grant programs to ensure compliance with federal regulations.

• When is this course relevant or timely?
  This course is especially relevant upon its latest revision as of June 23, 2025, and remains timely for professionals dealing with current federal grant standards and audits.

• How is a course like this consumed or used?
  The course is delivered as a QAS Self Study video and text format, requiring completion of review questions and a final exam with at least a 70% passing score.

Sefton Boyars is joined by Bill Allen for this three hours credit class on general cost principles of federal government grants. General cost principles are the rules that govern if any cost is acceptable to be charged to a federal grant. The course will cover everything from identifying the “big three” general cost principles, the Prudent Person Rule, requirements for the arms-length bargaining, and judging whether a cost is allowable. It will provide you with the knowledge of grantee and pass-through organizations, federal grant personnel, and auditors of federal grant programs.

Video - NASBA QAS - Text - NASBA Registry - 2145

Course Learning Objectives

• Identify the general cost principles
• Identify the Prudent Person Rule as it applies to the general cost principles
• Identify the requirement for arms-length bargaining
• Identify whether a cost is allocable to a federal award
• Identify the “big three” general cost principles
• Determine whether a cost is allowable under the general cost principles

Chapter 1 - General Cost Principles

Chapter 1 Review Questions

Glossary