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