Section 1108.180 - ExpendituresExpenditures mean charges made by a recipient or subrecipient to a project or program under an award.
(a) The charges may be reported on a cash or accrual basis, as long as the methodology is disclosed and is consistently applied.(b) For reports prepared on a cash basis, expenditures are the sum of: (1) Cash disbursements for direct charges for property and services;(2) The amount of indirect expense charged;(3) The value of third-party in-kind contributions applied; and(4) The amount of cash advance payments and payments made to subrecipients.(c) For reports prepared on an accrual basis, expenditures are the sum of: (1) Cash disbursements for direct charges for property and services;(2) The amount of indirect expense incurred;(3) The value of third-party in-kind contributions applied; and(4) The net increase or decrease in the amounts owed by the recipient or subrecipient for:(i) Goods and other property received;(ii) Services performed by employees, contractors, subrecipients, and other payees; and(iii) Programs for which no current services or performance are required, such as annuities, insurance claims, or other benefit payments.