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

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

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

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

5. Online Training Pre-reqs
Fiscal/Admin
All Grantees
Administrative Costs and Indirect Costs
Online Training
Recorded Link:
Watch by:
December 7, 2012
Cost Principles and Selected Items of Cost
Uniform Administrative Requirements
Recorded Webinar

6. 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!

7. Administrative Costs

8. 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

9. Administrative Costs - Definition
20 CFR (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

10. 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

11. 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

12. 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

13. Indirect Costs

14. 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

15. 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

16. 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.

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

18. Fiscal and Administrative requirements

19. 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

20. 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

21. 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

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

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

24. Please enter your questions into the Chat Room!

25. Online Training

26. Share Your Ideas with Your Peers!

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

28. Stay Informed, Get Connected!

29. THANKS! www.workforce3one.org
For more information about the Workforce Investment System:
Visit
Call US2-JOBS
THANKS!