OMB Circular A-87

OMB Circular A-87 provides guidelines for managing and accounting for costs claimed by state and local governments when they use federal funds. It ensures expenses are allowable, reasonable, and properly documented, helping prevent misuse of federal money. The circular covers how to classify costs, allocate shared expenses fairly, and maintain financial transparency. Its goal is to promote consistent and effective financial management practices, ensuring federal funds are used appropriately for program purposes while maintaining accountability and integrity in public spending.