Field notes
What “eligible expenditure” means when the agreement is silent
How grant compliance auditors in Taiwan treat cost eligibility when the award letter leaves grey areas between budget lines.
Grant agreements often name cost categories without defining every invoice that might appear under them. When hospitality, “programme materials,” and “professional services” sit beside each other, finance teams invent local rules that feel consistent — until a funder reads them differently.
In fieldwork we start with the hierarchy the award actually gives us: the signed agreement, any published cost principles referenced by clause, then the approved budget narrative. Internal finance policies come after that. A travel rule that is generous inside your NGO may still breach a ministry per-diem cap written into the award.
When the text is truly silent, we document management’s interpretation, test whether it was applied consistently, and note the ambiguity as an observation rather than an automatic questioned cost. That distinction matters: programme officers respond better to a clear ambiguity note than to a surprise repayment demand invented from silence.
If your next award is being negotiated, ask the funder to define the grey categories in writing before spending begins. A one-page clarification now is cheaper than remediation later.