Cancellation fee for hotel from sickness

[harr...@umn.edu]

PI couldn't travel to meeting in Brainerd due to sickness and hotel package wasn't cancelled in enough time.  The hotel refunded all but $40 of the fee (they provide meals and rooms as a package).

Can the $40 fee stay on the award or should we move it to a non sponsored? 

***NOTE:  This question was originally posted in the travel section, but I thought it might be more of an allowable direct cost or not ...