The Department of Appeals Board upheld the Administration for Children and Families decision to disallow $53,396 in costs charged to Texas Migrant Council's Head Start grant. The disallowed amount represented fees paid by TMC to the voting members of its Board of Directors for their attendance at TMC Board meetings. ACF determined that any charge to Head Start funding for the fees in question would violate federal cost principles. Grantee governing body will benefit from reviewing this decision.