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 OMB Circular A-87 State/Local/Indian Tribes 2 CFR OMB Circular A-122 Non-Profit Organizations 2 CFR 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 PRINCIPLES OMB A-21 2 CFR Part 215 & 220 OMB A-87 2 CFR Part 225 OMB A CFR Part CFR 31 UNIFORM ADMINISTRATIVE REQUIREMENTS DOL REGULATIONS OMB A CFR Part CFR 95 OMB A CFR 97 Common Rule OMB A CFR 95 AUDIT REQUIREMENTS OMB A 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 CFR

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 –Tools –Portions of Acquiring Location for Training –Construction 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: For the Indirect cost determination guide: minationguide/cdg.pdf