Chapter 12 relgeting and Performance Mensurement 519 12-21 Allowable Costs under Federal Grants. The United States Office of Man- agement and Budget (OMB) provides guidance on the allowability of costs under federal grant agreements in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Following is a list of costs being considered for reimbursement under a federal grant: I. Publication costs for electronic and print media, including distribu- tion, promotion, and general handling. 2, Alcoholic beverages purchased to host a foreign dignitary. 3, Value Added Tax (VAT) charged for the purchase of goods or services that a nonfederal entity is legally required to pay to a foreign country 4. Bad debts. Recruiting costs. 6. Employee dependent care costs. 7. Costs of contributions and donations. 8. Necessary and reasonable expenses incurred for security to protect facilities, personnel, and work products. Required For each of the costs listed, indicate with an A (allowable) if the cost is always allowable under OMB guidance, an N (nonallowable) if the cost is not allowable under OMB guidance, and an M (may be allowable) if the cost is allow- able under specific circumstances. For any costs marked with an M, explairn the circumstance necessary for the cost to be allowable