Section 970.3101-10 - Indirect cost rate certification and penalties on unallowable costs(a) Certain contracts require certification of the costs proposed for final payment purposes. Section 970.4207-03-02 states the administrative procedures for the certification provisions and the related contract clause prescription.(b) If unallowable costs are included in final cost settlement proposals, penalties may be assessed. Section 970.4207-03-02 states the administrative procedures for penalty assessment provisions and the related clause prescription. 65 FR 81009 , Dec. 22, 2000, as amended at 74 FR 36373 , July 22, 2009