TAA-CCCT Round 2 New Grantee Fiscal and Administrative Q&A December 17th, 2012

Practice In the Chat Room, please type the name of your organization, your location, and how many people are attending with you today.

Access to Webinar Resources Recordings and transcripts are available within 2 business days after the event.

Division of Policy, Review, and Resolution Office of Grants Management Presenter Maggie Ewell Division of Policy, Review, and Resolution Office of Grants Management

Online Training Pre-reqs Fiscal/Admin All Grantees Administrative Costs and Indirect Costs Online Training Recorded Link: https://www.workforce3one.org/view/4201120336293625358/info Watch by: December 7, 2012 Cost Principles and Selected Items of Cost https://etareporting.workforce3one.org/view/4011130552739025566/info Uniform Administrative Requirements Recorded Webinar https://etareporting.workforce3one.org/view/4011200950256115537/info

Purpose of today’s webinar Refresher of key take-aways from online training Administrative costs Indirect Costs Federal Cost Principles Uniform Administrative Requirements To answer your questions!

Administrative Costs

Two Basic Cost Categories Administration Function based Not related to direct program services Can be both direct and indirect Program Activities All grant costs that relate to direct provision of services to participants and employers

Administrative Costs - Definition 20 CFR 667.220 (Workforce Investment Act) Definition also applies to other ETA grants Referenced in the grant agreement Allocable portion of necessary and reasonable costs that are not related to direct provision of workforce services

Administrative Functions Accounting, budgeting, financial and cash management Procurement and purchasing Personnel and property management Payroll, audit and general legal services Oversight and monitoring of administrative activities Developing information systems and procedures related to administrative functions

Administrative Cost Limitation Grant limit = 10% Contained in Grant Agreement In consortiums, all consortium member admin costs in total ≤ 10% Includes direct and indirect administrative costs

Administrative Costs - Compliance Tracked, accounted for & reported quarterly Measured at conclusion of grant period Not a compliance issue during life of grant If exceed 10% at end of grant, costs will be disallowed

Indirect Costs

Direct Cost or Indirect Cost? Direct Costs Cost identified with a specific grant Indirect Costs Cost shared among multiple programs Cost shared among multiple categories Direct and Indirect Costs Can Be Either Administrative or Program

Cost Allocation The process used to distribute costs based on the concept of benefits received Benefit to grant program and cost objectives in particular Direct charged to single objective, shared split across objectives, or indirect General Ledger or Books of Account

Administrative Costs ≠ Indirect Costs For ETA grants, administrative cost limits are based on a percent of the total grant award. Indirect cost rates are a percent of a specific direct cost base.

Administrative Costs May be BOTH Direct & Indirect $550,000 Total Grant Award $475,000 Direct $55,000 Admin $75,000 Indirect 17

Fiscal and Administrative requirements

It’s all very simple… Written Policies and Sound Business Practices Followed Consistently Over Time With Each Funding Stream Treated Equally With All Costs Being Necessary and Reasonable Would be done similarly by a Prudent Person Ensuring Proportionate Share and Benefits Received

Federal Cost Principles Set of government wide rules Now codified at 2 CFR Part 220, Educational Institutions Incorporated by reference - Uniform Administrative Standards 29 CFR 97.22 29 CFR 95.27 Cost principles Define conditions for charging costs Types of Allowable costs Allowable Unallowable Allowable with conditions

Selected Items of Cost 3 types of Costs If Cost not Treated Allowable Unallowable Allowable with Conditions If Cost not Treated Principles of necessary and reasonable apply 21

Allowable Cost Standards Necessary To achieve grant outcomes Reasonable Sound business practices Allocable Only charge costs that clearly BENEFIT grant Additional standards

Grant Management Requirements 29 CFR Part 95 Uniform Administrative Requirements Financial Systems Reporting Procurement Program Income Property Management Post-Award requirements

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Online Training http://etareporting.workforce3one.org http://www.dol.gov/oasam/boc/dcd/index.htm

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