Post on 14-Dec-2015
Allowable Costs
2014 YouthBuild Webinar Series
Topics of the session:
Definition and Sources
Types of costs
Selected items of costs
What are Cost Principles?
• Set of government-wide rules
• Applicable to all Federal grants
• Define conditions for charging costs– Allowable & unallowable costs– Direct , Shared & Indirect costs– Descriptions
What are Cost Principles?
Principles also discuss time distribution and allocation of
personnel services
Cost Principles
• 2 CFR 225 - OMB Circular A-87 State/Local/Indian Tribes
• 2 CFR 230 - OMB Circular A-122 Non-Profit Organizations
• 2 CFR 215 - OMB Circular A-21 Educational Institutions
• 48 CFR Part 31 Commercial Organizations
Cost Principles
Educational
Institutions
States, Local Governments
& Indian Tribes
Non-Profit
Organizations
Commercial
Organizations
COST
PRINCIPLESOMB A-212 CFR Part 215 & 220
OMB A-872 CFR Part 225
OMB A-1222 CFR Part 230
48 CFR 31
UNIFORM ADMINISTRATIVE REQUIREMENTS
DOL REGULATIONS
OMB A-110 2 CFR Part 215
29 CFR 95
OMB A-102
29 CFR 97
Common Rule
OMB A-110
29 CFR 95
29 CFR 95
AUDIT
REQUIREMENTSOMB A- 133 OMB A-133 OMB A-133 29 CFR 96
Other Regulations
• Uniform Administrative Standards — 29 CFR 95 and 97— 29 CFR 95
• WIA Regulations• 20 CFR 672 YouthBuild• Grant Agreement • SGA (Solicitation Grants Application)• Employment Training and Guidance Letters
Standards for allowability of costs
• Found in circulars and Federal regulations• Apply to all costs charged to Federal funds
Cost must be reasonable, necessary, allocable and
to the benefit of the grant
Standards for allowability of costs
• Reasonable & Necessary– “proper & efficient”– “prudent person theory”
• Allocable– Clearly benefit program– Both direct & indirect costs
Standards for allowability of costs
• Consistent with GAAP• Consistent with the rules • Consistent treatment across time• Cannot be used as match • Documented and traceable
Program regulations may have prohibited costs
20 CFR 668.340-35020 CFR 667.260-268
Types of costs
Allowable
Outreach Training Costs
Stipends Incentives for
youth
Unallowable
Entertainment Losses
Fines and Penalties
Contingency Reserves
Allowable with
conditions
Memberships Pre award
Costs Interest costs
Types of costs
• If prior approval requirement exists− Before incurring cost
− Must be requested in writing− Must be approved
• Approval requests to Grant Officer
• Youthbuild allowable costs exceptions – TEGL 5-10 and 20 CFR 672.525– Tools– Portions of Acquiring Location for Training– Construction Costs
Selected items of costs
Selected items of costs
• Payments to participants engaged in work and non–work related YouthBuild activities.
• Costs of Needs Based stipends
• Cost of supportive services
• Cost for exiters receiving Follow-up services.
300 baseball game tickets to giveaway at job
fair?
Entity paid for settlement on
wrongful termination law
suit
Are tattoo removals
allowable?
Question
Training Resources
For additional training:
http://etareporting.workforce3one.org
For the Indirect cost determination guide:
http://www.dol.gov/oasam/programs/boc/costdeterminationguide/cdg.pdf