Disallowed Costs [Education] Law and Legal Definition

According to 34 CFR 74.2 [Title 34 – Education; Subtitle A -- Office of the Secretary, Department of Education; Part 74 -- Administration of Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations; Subpart A – General], the term disallowed costs means “those charges to an award that the Secretary determines to be unallowable, in accordance with the applicable Federal cost principles or other terms and conditions contained in the award.”