Our district finally completed contract negotiations with the teachers association and retroactive raises for prior school years were included. We are paying the raises this year, and we have sufficient funding available in this year's grant budget to cov
Usually retroactive pay is additional money payable in the current year for services provided in a prior year. If that is the case, the cost attributable to a prior year would not be allowable in your current year grant budget. The only salaries allowable in this year's grant are for work performed this year. It is possible that a contractual agreement would explicitly call for a bonus payment that may be calculated based on a prior year's salary but is not attributable to the service provided during the prior year. If you could demonstrate that this is the case, then the charge could be allowed in the current year.