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Allowable Costs

Allowable Costs. 2014 YouthBuild Webinar Series. Cost shout out!. 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

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Allowable Costs

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  1. Allowable Costs 2014 YouthBuild Webinar Series

  2. Cost shout out!

  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

  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 with conditions Memberships Pre award Costs Interest costs Allowable Outreach Training Costs Stipends Incentives for youth Unallowable Entertainment Losses Fines and Penalties Contingency Reserves

  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. Selected items of costs • Youthbuild allowable costs exceptions • TEGL 5-10 and 20 CFR 672.525 • Tools • Portions of Acquiring Location for Training • Construction Costs

  15. 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.

  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: http://etareporting.workforce3one.org For the Indirect cost determination guide: http://www.dol.gov/oasam/programs/boc/costdeterminationguide/cdg.pdf

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