633.304—Section 402 cost allocation.
(a) General.
Allowable costs for section 402 programs shall be charged against the following four cost categories: Administration; training; training-related supportive services; and nontraining-related supportive services.
(1)
Costs are allocable to a particular cost category to the extent that benefits are received by such category.
(2)
All grantees are required to plan, control, and report expenditures against the aforementioned cost categories.
(3)
All grantees are responsible for ensuring that subgrantees and contractors plan, control, and report expenditures against the aforementioned cost categories.
(b) Limitation on certain costs.
(1)
Costs for administration of the grant shall not exceed 20 percent of the total amount of the grant.
(2)
Costs for nontraining-related supportive services shall not exceed 15 percent of the total amount of the grant.
(c) Classification of costs by category.
All grant costs shall be charged to the four cost categories listed above. Within each category costs shall be assigned and accounted for as follows:
(1) Administration.
Administration costs consist of all direct and indirect costs associated with the management of the program. Administrative costs shall be limited to those necessary to effectively operate the program. These costs include but are not limited to: the salaries and fringe benefits of personnel engaged in executive, fiscal, data collection, personnel, legal, audit, procurement, data processing, communications, maintenance, and similar functions; and related materials, supplies, equipment, office-space costs, and staff training.
(i)
Also included are salaries and fringe benefits of direct program administrative positions such as supervisors, program analysts, labor market analysts, and project directors. Additionally, all costs of clerical personnel, materials, supplies, equipment, space, utilities, and travel that are identifiable with these program-administration positions are charged to administration.
(ii)
Allowances and reimbursement costs for governing boards and advisory councils shall be prorated wherever applicable as administrative costs among all the grants, from whatever source, administered by the grantee.
(2) Training.
(i)
Instruction and related costs consist of goods and services which affect those program participants who are in either a work environment, or classroom setting (including classroom training in conjunction with Vocational Exploration or Job Readiness or tryout employment) and shall be charged to training, i.e., salaries, fringe benefits, space, utility, travel and equipment. Training costs include, but are not limited to, the following: The costs associated with on-the-job training services; employer outreach necessary to obtain job listings or job-training opportunities, salaries; fringe benefits; equipment and supplies of personnel engaged in providing training, including remedial education; job-related counseling for participants; employability assessment and job development; tuition fees, books and other teaching aids; equipment and materials used in providing training to participants, classroom space and utility costs; job search assistance, labor market orientation, and job referral costs. In addition:
(ii)
Wages and fringe benefits for participants in work experience, tryout employment, classroom training, shall be charged to training. Cost-of-living increases are considered wages.
(iv)
Any single cost which is properly chargeable to training and to one or more other categories shall be prorated among training and other appropriate cost categories.
(3) Training-related supportive services.
Costs of services which are necessary to enable an eligible individual to participate in training or subsidized employment under section 402 and to obtain subsequent unsubsidized employment shall be charged to training-related supportive services. Such supportive services may include but are not limited to transportation, health care, special services and materials for the handicapped, child care, meals, temporary shelter, financial counseling, and other reasonable expenses required for participation in the program and may be provided in-kind or through cash assistance. Training-related supportive services costs and related costs shall be charged to this cost category.
(4) Nontraining-related supportive services.
“Services only” are the costs of the goods and services provided to participants who are not engaged in work experience, tryout employment or training activities, including but not limited to such goods and services as: transportation, health care, temporary shelter, meals and other nutritional assistance, legal or paralegal assistance and emergency assistance.
(d) Cost categories assignable to program activities.
(1)
Classroom training. Cost categories are: Training and training-related supportive services.
(6)
Services only (no referral to employment): Cost category is: Nontraining-related supportive services.