Policy Chapters and Sections

AEL Allowable and Unallowable Expenses

Chapter: 10 Section: 5
Effective Date: 1/7/2026
Expiration Date: Continuing
Published Date: 1/9/2026 2:41:12 PM
Status: Current
Version: 1

Tags: AEL Allowable, AEL Unallowable, AEL Expenses, AEL Claims

Purpose 

The purpose of this policy is to outline and provide information on allowable and unallowable expenses for Title II programs related to the federal Adult Education Family Literacy Act grant, Title II of Workforce Innovation and Opportunity Act.  

Content 

Details on allowable and unallowable costs can be found in 2 CFR Part 200.43 and 2 CFR Part 200.420 et seq. Costs must meet the standards of Allowable, Allocable, Necessary, and Reasonable to be allowable and the provider must demonstrate these are met.  

Federal funds cannot be spent on Official HiSet testing or expenses. Federal funds can be used for HiSet Official Practice Tests as this is part of the instructional process.  

Some common allowable and unallowable costs are outlined here.  

Cost  

Allowability 

Cost 

Allowability 

Personnel costs and fringe benefits associated with AEFLA program-related functions 

Allowable 

Commencement  

Unallowable 

Program outreach efforts 

Allowable 

 

Entertainment and prizes 

Unallowable 

Travel costs associated with AEFLA program-related functions 

Allowable, with restrictions 

 

Fees for HiSET or HSED (i.e. testing fees or staff costs for proctoring) 

Unallowable 

Memberships and Professional Activities 

Allowable, with restrictions 

Lobbying 

Unallowable 

State fund allowability is described in State Administrative Rule 877-32.2(5).  
Action   

No action needed at this time. 

The content of this policy may be subject to routine monitori



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