Home | Grant and Funding Opportunities | California Library Literacy Services (CLLS) Funding Opportunity | Allowable and Unallowable Expenses Guidelines
Allowable and Unallowable Expenses
Guidelines
Updated July 2026
The California Library Literacy Services (CLLS) program follows California Education Code Section 18880-18883 (PDF) (the “CLLS Law”). This guide explains what you can and cannot spend CLLS funds on.
Not sure if an expense is allowable? After reading through this content, contact CLLS staff at [email protected].
Funding Requirement
Direct services requirement: Spend at least 90 percent of CLLS award funds and local cash match funds on direct literacy services to learners and their families (if your program includes Family Literacy Services).
Direct services include expenses in these categories:
Salaries, Wages, and Benefits
Consultant Fees
Travel
Supplies & Materials
Equipment
Services
Indirect costs: You may allocate up to 10 percent of the direct costs (not the total award) as indirect costs. You may allocate indirect costs for both your CLLS award funds and local cash match funds (if applicable). See the “Indirect” section below for details.
All CLLS costs must be:
allowable based on the guidelines below.
reasonable in relation to current market value of items and payment for services. necessary to the achievement of the project goals within the project period.
Allowable Expenses by Budget Categories
Salaries, Wages, and Benefits
You may pay for literacy services staff and other staff for time spent directly supporting CLLS programs. Include “fully burdened” salary costs. This means the employee’s base salary plus traditional employee benefits like health insurance, retirement contributions, and payroll taxes. Staff must be employed by the library, the city, the county, or the district.
Consultant Fees
You may pay specialists to provide expertise in specific areas. This includes:
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Consultant fees
Consultant travel and accommodation
Support services the consultant provides directly
Note: Contract staff and presenters who provide direct literacy services are categorized under “Services.” See “Services” below.
Travel
You may pay for in-state travel by literacy services staff following state travel guidelines and rates. See the California Department of Human Resources Travel Reimbursements webpage .
Allowed:
Travel to in-state network meetings and professional development for CLLS-related activities if the destination is 50 or more miles away in one direction
Airfare, ground transportation, hotel, and meals for travel How to handle costs that exceed state rates:
CLLS funds can cover travel costs up to the state rate
Local funds can cover the part that exceeds the state rate Hotel or meal costs paid with local funds that exceed state rates can count toward your local match Show an effort to follow state rates and keep records of any travel expenses that exceed them Not allowed: Out-of-state travel.
Supplies & Materials
You may pay for supplies and materials that directly support CLLS programs.
Circulation materials: Books and other items added to the library’s general collection for learners.
Materials for internal use: Books, booklets, workbooks, videos, and other materials for learners and tutors to use in your literacy program. Includes Family Literacy materials if funded for those services.
Materials to provide to the community: Public awareness materials about the literacy program printed in-house.
Family Literacy programs may distribute a limited number of books during targeted outreach (see the CLLS FAQ (PDF)).
Program supplies and materials:
Consumable books and workbooks
Non-consumable learning materials for sessions or classes At-home learning materials (such as Family Literacy learning kits) Professional development materials for staff and volunteers Training materials if you conduct training in-house
Program information materials printed in-house (brochures, flyers, business cards) Postage
Bookshelves used only for literacy materials
Other internal program supplies
Office supplies: Paper, pencils, staples, etc.
Printing: Costs for photocopying and printing done by literacy staff. For third-party printing services, see “Services” below.
Food and beverages: Allowed for Family Literacy programming only when needed to encourage full family participation (if funded for Family Literacy Services). Not allowed for adult literacy or ESL programming, celebrations, volunteer recognition events, or social events. See “Training” under “Services” for food costs at training events.
Small equipment: Tablets, computers, hotspot devices, and other equipment purchases (not in the annual operating budget) that cost $4,999 or less per item.
Equipment
You may pay for long-term, depreciable items that cost $5,000 or more per unit and are not in the annual operating budget.
Required: Get California State Library approval before purchasing equipment that costs $5,000+ per unit.
Contact your state grant team.
Services
You may make payments to individuals or companies contracted to manage and/or implement CLLS activities.
This includes:
Background checks: For literacy volunteers.
Childcare: That directly enables learners to participate in family literacy programs (if funded for Family Literacy Services).
Communications: Telephone, fax, hotspot data plans, and other communication expenses if you can itemize costs. If costs are estimated and fall under general cost recovery, include them in Indirect.
Contract staff and instructors: Limited-term literacy staff under personal service contracts who directly support CLLS programs.
Databases: That support the CLLS program.
Enrichment and educational presentations: Presentations related to literacy services, including guest speakers and trainers.
Memberships and professional activities: Memberships in literacy-related professional organizations.
Promotion: Advertising literacy services through local newspapers, radio, television, DMV, bus stations, social media or other places where potential learners or volunteers may see them.
Printing, design, and media production: Third-party services for these activities.
Subscriptions and licenses: Subscriptions to learning platforms or services that support the CLLS program.
Training: Related to CLLS for literacy staff, volunteers, and learners. Includes speaker/trainer fees and conference registration. For volunteers and learners, the library must pay costs directly. You cannot provide direct payments to a volunteer or learner. You may provide working lunches or refreshments for training that lasts 4 or more hours. Social lunches or refreshments during breaks are not allowable. See “Unallowable Expenses” below.
Indirect
Costs for payroll processing, accounting, facility space, utilities, furniture for literacy program use, literacy space modifications (such as window tinting or soundproofing in literacy areas) if they do not permanently change the building, single-year warranty costs, and similar costs.
Limit: Cannot exceed 10 percent of direct costs for your CLLS award and local cash match.
How to calculate: Add all expense categories except Indirect. Your indirect costs cannot exceed 10 percent of this total.
No itemization required: You do not need to itemize indirect costs.
Unallowable Expenses
You cannot use CLLS funds for these costs. You may use local funds, but these expenses cannot count toward your local cash match.
Advertising at events: Trade shows, conventions, meetings, exhibits, displays, demonstrations, hospitality suites, and related staff salaries.
Advocacy and lobbying: Activities to influence grants, contracts, or legislation, and memberships in organizations substantially engaged in these activities.
Building costs: General library construction, modifications, or renovations, including permanent changes like lighting installations.
Contributions and donations: Cash, property, or services given to others using grant funds, including honorariums and stipends.
Direct payments to volunteers or learners: Cash, checks, gift cards, prepaid credit cards, or similar payment methods for reimbursement.
Entertainment: Amusement, diversion, social activities, tickets to shows or sports events, and related costs (meals, lodging, rentals, transportation, gratuities).
Food and beverages: Alcoholic beverages, food for volunteer recognition events, and social activities (consider seeking community partner donations or other funding instead).
Fundraising: Financial campaigns, solicitation of gifts and bequests, and related expenses.
Furniture: General library furniture is unallowable. CLLS-specific furniture is only allowable as an indirect cost up to 10 percent of the subtotal. See “Indirect” for more information.
Giveaways and promotional items: Examples include branded merchandise for outreach events, appreciation gifts for volunteers, or prizes or incentives for learners. See “Materials to Provide to the Community” section under “Supplies & Materials” for information on allowable items.
Multi-year service and warranty contracts: For technology equipment is unallowable. Single-year contracts for literacy-specific items within the funded fiscal year may be considered indirect. See “Indirect” for more information.
Out-of-state travel: This is unallowable. You may use local funds for this purpose. See “Travel” for more information.
Peripheral employee costs and unfunded pension liability: Parking, health care stipends, or other costs not in the formal benefits package. Unfunded pension liability is unallowable.
Local Cash Match Guidelines
Cash match is monetary support that has a dollar value attached to it. Cash match refers to direct funds from your organization. It can also include money that public agencies, private organizations and/or individuals paid for direct CLLS expenses. Local cash match must follow the allowable and unallowable expenses in this document.
Exception: You may include in-state travel costs that exceed state rates in your local cash match.
Interest on Grant Funds
Deposit grant funds in interest-bearing accounts when possible. Use interest for library literacy purposes. You do not need to report interest income on financial reports.
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