View source for Fines, Penalties, and Mischarging Costs

{{Cost Allowability
|Allowable or Unallowable=Unallowable
|Regulation Source=FAR
}}
== Fines, Penalties, and Mischarging Costs <ref>FAR 31.205-15</ref> ==

Generally Unallowable, unless incurred as a specific contract requirement

== Overview ==

Costs of fines and penalties resulting from violations of, or failure of the contractor to comply with, Federal, State, local, or foreign laws and regulations, are '''unallowable except when incurred as a result of compliance with specific terms and conditions of the contract or written instructions from the contracting officer.'''
 
(b) Costs incurred in connection with, or related to, the mischarging of costs on Government contracts are unallowable when the costs are caused by, or result from, alteration or destruction of records, or other false or improper charging or recording of costs. Such costs include those incurred to measure or otherwise determine the magnitude of the improper charging, and costs incurred to remedy or correct the mischarging, such as costs to rescreen and reconstruct records.

==References and Notes==
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