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Categorizing expenses as Admin and Program Costs is not always clearly black and white. The following distinctions apply, in accordance with Hawaii state Procurement Office —Hawaii Administrative Rules Title 3 Department of Accounting and General Services Subtitle 11 Procurement Policy Board Chapter 123 Cost Principles and Code of Federal Regulations 011) Title 2 Part 200.405. Costs That Benefit Multiple Projects: • Some costs benefit more than one project or activity (such as rent for an office used for multiple programs). These costs may be allocated across projects in a way that reflects the proportion of benefit each project receives. For example, if half of the office space is used for one project and the other half for another, rent should be split accordingly. Such proportional allocations are acceptable within either the Admin Costs or Program Costs categories, as long as they reflect the actual usage by each project. Supporting documentation may be required to show the breakdown of the allocation. Costs Necessary to Overall Operation: Some costs are necessary for the overall business or operation but may not be directly tied to any one specific project (like administrative salaries). These costs can still be allocated to the proposed budget within the Admin Costs section, but total Admin costs may not exceed 10% of the overall awarded amount. Shared Costs Between Admin and Program: • It maybe allowable to allocate a portion of aline item between both Admin Costs and Program Costs if the line item serves both functions, provided there is a justifiable, reasonable, and documented allocation method - such as square footage, time logs, or usage percentages. • For example, in line with federal grant standards, staff who spend 20% of their time delivering direct program services may charge 20% of their salary and fringe benefits to Program Costs, with the remaining 80% attributed to Admin Costs, provided that Admin costs do not exceed 10% of the total requested amount. Shared expenses —such as rent, utilities, or equipment —should be allocated using equitable bases, such as square footage, usage logs, or functional timekeeping. Under 2 C.F.R. § 200.405(d), direct allocation of shared costs is permissible when the distribution reflects actual benefit and is consistent and documented. Definitions ) HHF RFGA 2025-2026