2014 TAACCCT TRAINING AND CONVENING

Allowable Costs

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Cost shout out!

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Topics of the session: Definitions and Sources

Types of costs

Selected items of costs

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

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

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

What are Cost Principles?

Principles also discuss time distribution and allocation of personnel services

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Cost Principles 2 CFR 215 - OMB Circular A-21

Educational Institutions

2 CFR 225 - OMB Circular A-87 State/Local/Indian Tribes

2 CFR 230 - OMB Circular A-122 Non-Profit Organizations

48 CFR Part 31 Commercial Organizations

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Cost Principles Educational Institutions

States. Local Governments & Indian Tribes

Non-Profit Organizations

Commercial Organizations

COST PRINCIPLES

OMB 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-1102 CFR PART 215

29 CFR 95

OMB A-102

29 CFR 97Common Rule

OMB A-110

29 CFR 95

29 CFR 95

AUDIT REQUIREMENTS

OMB A-133 OMB A-133 OMB A-133 29 CFR 96

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Other Regulations Uniform Administrative Standards

— 29 CFR 97— 29 CFR 95

WIA Regulations Grant Agreement SGA (Solicitation for Grant Applications) Employment Training and Guidance

Letters

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Standards for allowability of costs Found in circulars and Federal

regulations Apply to all costs charged to Federal

fundsCost must be reasonable,

necessary, allocable and to the benefit of the grant

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Standards for allowability of costsReasonable & Necessary

“proper & efficient” “prudent person theory”

Allocable Clearly benefit program Both direct & indirect costs

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

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

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Types of costs Allowable

Curriculum development, classroom supplies and equipment

Unallowable Entertainment, losses, fines and penalties,

contingency reserves

Allowable with conditions Memberships, pre award costs, interest costs

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Types of costs• If prior approval requirement exists

− Before incurring cost− Must be requested in writing− Must be approved

• Approval requests to Grant Officer

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Selected items of costsTAACCCT allowable activities

Hiring and/or training additional instructors or staff

Purchasing or upgrading classroom supplies and equipment

Cost associated with implementing changes in the time or scheduling of courses

Other

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Selected items of costsTAACCCT unallowable activities

Participants’ tuition, books, fees, and other personal expenditures (supportive services)

Incentive payments Participants’ wages Stipends for wage replacement of participants Purchase of real property Construction Supplanting

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

300 baseball game tickets to giveaway at job fair?

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Entity paid for settlement on wrongful termination law suit

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Entity paid for settlement on wrongful termination law suit

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Question

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING

Training ResourcesFor additional training:

http://etareporting.workforce3one.org

For the Indirect cost determination guide:

http://www.dol.gov/oasam/programs/boc/costdeterminationguide/cdg.pdf

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING