allowable costs 2014 youthbuild webinar series
TRANSCRIPT
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Allowable Costs
2014 YouthBuild Webinar Series
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Topics of the session:
Definition and Sources
Types of costs
Selected items of costs
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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
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What are Cost Principles?
Principles also discuss time distribution and allocation of
personnel services
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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
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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
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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
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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
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Standards for allowability of costs
• Reasonable & Necessary– “proper & efficient”– “prudent person theory”
• Allocable– Clearly benefit program– Both direct & indirect costs
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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
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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
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Types of costs
• If prior approval requirement exists− Before incurring cost
− Must be requested in writing− Must be approved
• Approval requests to Grant Officer
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• 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
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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.
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300 baseball game tickets to giveaway at job
fair?
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Entity paid for settlement on
wrongful termination law
suit
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Are tattoo removals
allowable?
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Question
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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
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