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Allowable Costs 2014 YouthBuild Webinar Series.

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Presentation on theme: "Allowable Costs 2014 YouthBuild Webinar Series."— Presentation transcript:

1 Allowable Costs 2014 YouthBuild Webinar Series


3 Topics of the session: Definition and Sources Types of costs Selected items of costs

4 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

5 What are Cost Principles? Principles also discuss time distribution and allocation of personnel services

6 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

7 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-122 2 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 AUDIT REQUIREMENTS OMB A- 133 29 CFR 96

8 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

9 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

10 Standards for allowability of costs Reasonable & Necessary –“proper & efficient” –“prudent person theory” Allocable –Clearly benefit program –Both direct & indirect costs

11 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 668.340-350 20 CFR 667.260-268

12 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

13 Types of costs If prior approval requirement exists − Before incurring cost − Must be requested in writing − Must be approved Approval requests to Grant Officer

14 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

15 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.

16 300 baseball game tickets to giveaway at job fair?

17 Entity paid for settlement on wrongful termination law suit

18 Are tattoo removals allowable?

19 Question

20 Training Resources For additional training: For the Indirect cost determination guide: minationguide/cdg.pdf


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