An idle facility cost is an allowable expense to charge to federal grants when a

A Comprehensive Detailed Under 2 CFR § 200.446 of the OMB Uniform Guidance, idle facilities (or idle capacity) costs are generally unallowable. However, exceptions exist. One allowable condition is when the idleness results from fluctuations in workload that are considered normal for the type of operation. Other allowable cases include those due to reorganization, restraint, or repair/maintenance needs — but only within reasonable limits and duration. Relevant Reference: 2 CFR § 200.446 – Idle Facilities and Idle Capacity OMB Uniform Guidance (2 CFR Part 200) – Cost Principles GAO Red Book – Allowable Grant Expenditures Answer : A. fluctuation in workload is reasonably expected ══════════════════════════════════