Expenditures.

§ 1108.180 Expenditures. Expenditures mean charges made by a recipient or subrecipient to a project or program under an award. (a) The charges may be reported on a cash or accrual basis, as long as the methodology is disclosed and is consistently applied. (b) For reports prepared on a cash basis, expenditures are the sum of: (1) Cash disbursements for direct charges for property and services; (2) The amount of indirect expense charged; (3) The value of third-party in-kind contributions applied; and (4) The amount of cash advance payments and payments made to subrecipients. (c) For reports prepared on an accrual basis, expenditures are the sum of: (1) Cash disbursements for direct charges for property and services; (2) The amount of indirect expense incurred; (3) The value of third-party in-kind contributions applied; and (4) The net increase or decrease in the amounts owed by the recipient or subrecipient for: (i) Goods and other property received; (ii) Services performed by employees, contractors, subrecipients, and other payees; and (iii) Programs for which no current services or performance are required, such as annuities, insurance claims, or other benefit payments.