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 OMB Circular A-21 Educational Institutions  2 CFR OMB Circular A-87 State/Local/Indian Tribes  2 CFR 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-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

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 funds Cost 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 costs  Reasonable & 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 CFR

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 costs  TAACCCT 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 costs  TAACCCT 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 Resources For additional training: For the Indirect cost determination guide: erminationguide/cdg.pdf

U.S. DOL ETA 2014 TAACCCT TRAINING AND CONVENING