The Office of Management and Budget (OMB) requirements lay out cost principles for a variety of cost items. It is very important
for both grantees and project sponsors to be aware of the OMB cost principles, and especially of unallowable costs.
Monitoring should focus on common items that may cause problems. During monitoring, review invoices and supporting documentation
to ensure they do not include unallowable costs, such as entertainment, contributions or donations paid for by federal funds,
political advocacy costs, or fines and penalties. Travel costs should also be carefully examined. HOPWA funds may only be used for travel
to approved HOPWA program trainings or technical assistance activities. Project sponsors should have written policies for reimbursing or covering travel costs.
These policies should include per mile and per diem rates, describe how to record travel costs and request reimbursement,
and should require supervisory approval of costs. Travel policies should be applied consistently across all of the organization’s programs.