The Administrative Cost Allowance (ACA) cannot be used to pay for which of the following?

The Administrative Cost Allowance (ACA) cannot be used to pay for which of the following?

• A. Travel for training
• B. Financial aid office expenses, including salaries
• C. Memberships in professional organizations
• D. Equipment purchases for labs

Answer: (C)

ACA covers costs that are directly tied to running the program’s administration. It is intended for expenses that keep the administrative machinery functioning, such as staff travel to training that improves how the program is run and salaries and other office costs in the financial aid office, as well as equipment that directly supports administrative operations or program delivery in the labs. Memberships in professional organizations, while potentially beneficial to staff and the institution, are ongoing dues that serve broader professional or institutional interests rather than a specific administrative task required to run the program. Because of that, they aren’t considered an allowable ACA expense.

ACA covers costs that are directly tied to running the program’s administration. It is intended for expenses that keep the administrative machinery functioning, such as staff travel to training that improves how the program is run and salaries and other office costs in the financial aid office, as well as equipment that directly supports administrative operations or program delivery in the labs. Memberships in professional organizations, while potentially beneficial to staff and the institution, are ongoing dues that serve broader professional or institutional interests rather than a specific administrative task required to run the program. Because of that, they aren’t considered an allowable ACA expense.