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(4) Contributions and donations: Costs of a contractor or subcontractor in the form of <br />contributions and donations to other organizations, including costs of donated services <br />and property, are unallowable. <br />(5) Depreciation of state financed property: Costs of depreciation of departmental property are <br />unallowable. <br />(6) Entertainment: Costs of amusements, social activities, and incidental costs relating thereto <br />such as meals, beverages, lodging, rentals, transportation, and gratuities are unallowable, <br />except for costs of entertainment specifically for departmental clients and necessary <br />expenses of staff who supervise departmental clients on contractor or subcontractor <br />sponsored activities. <br />(7) Fines and penalties: Costs resulting from violations of or failure to comply with federal, <br />state, and local laws and regulations are unallowable. <br />(8) First class air accommodations: The difference in cost between first class air <br />accommodations and less-than-first class air accommodations is unallowable, except <br />when less-than-first class air accommodations are not reasonably available. <br />(9) Fund raising: Costs of organized fund raising are unallowable. <br />(10) Legal fees to bring suit against federal or state government: The cost of legal expenses for <br />the prosecution or defense of claims by or against the federal or state government is <br />unallowable. <br />(11) Legislative expenses: The salaries and other expenses of county councilmen or <br />councilwomen, supervisors, commissioners, etc., whether incurred for the purposes of the <br />legislation or executive direction, are unallowable. <br />(12) Lobbying expenses: The cost of attempting to influence legislation pending before any <br />federal or state legislative body is unallowable except as provided for in RCW 42.17.190. <br />(13) Losses: Costs of actual losses which could have been covered either by insurance or by <br />contributions to a self-insurance reserve are unallowable, except for losses not covered <br />under nominal deductible insurance coverage and minor losses not covered by insurance <br />which occur in the ordinary course of operations, such as spoilage and breakage. <br />(14) Memberships: Costs of memberships for individuals in civic, business, technical or <br />professional organizations are unallowable. Costs of contractor or subcontractor <br />memberships in any organization whose predominate activity is influencing legislation are <br />unallowable. <br />( 15) Under-recovery of costs in other contract agreements: Any costs incurred in excess of the <br />federal and state contribution under any other contract agreement is unallowable. <br />UNALLOWABLE COSTS; FEDERAL ALCOHOL, DRUG ABUSE, and MENTAL HEALTH <br />SERVICES BLOCK GRANT <br />Washington State <br />Health Care Authority Page 77 of90 HCA Contract No. K3924