645.235—What types of activities are subject to the administrative cost limit on Welfare-to-Work grants?
(a) Administrative cost limitation (
(1) Formula grants to states.
Expenditures for administrative purposes under WtW formula grants to States are limited to fifteen percent (15%) of the grant award.
(2) Competitive grants.
The limitation on expenditures for administrative purposes under WtW competitive grants will be specified in the grant agreement but in no case shall the limitation be more than fifteen percent (15%) of the grant award.
(3)
Although administrative in nature, costs of information technology—computer hardware and software— needed for tracking and monitoring of WtW program, participant, or performance requirements, are excluded from the administrative cost limit calculation.
(b)
The costs of administration are that allocable portion of necessary and allowable costs associated with those specific functions identified in paragraph (c) of this section for the administration of the WtW program and which are not related to the direct provision of services to participants. These costs can be both personnel and non-personnel and both direct and indirect.
(1)
Performing overall general administrative functions and coordination of those functions under WtW including:
(vi)
Coordinating the resolution of findings arising from audits, reviews, investigations and incident reports;
(ix)
Developing systems and procedures, including information systems, required for these administrative functions;
(3)
Costs of goods and services required for administrative functions of the program, including goods and services such as rental or purchase of equipment, utilities, office supplies, postage, and rental and maintenance of office space;
(4)
Travel costs incurred for official business in carrying out administrative activities or the overall management of the WtW system; and
(5)
Costs of information systems related to administrative functions (for example, personnel, procurement, purchasing, property management, accounting and payroll systems) including the purchase, systems development and operating costs of such systems.
(d)
(1)
Only that portion of the costs of WtW grantees that are associated with the performance of the administrative functions described in paragraph (c) of this section and awards to subrecipients or vendors that are solely for the performance of these administrative functions are classified as administrative costs. All other costs are considered to be for the direct provision of WtW activities and are classified as program costs.
(2)
Personnel and related non-personnel costs of staff who perform both administrative functions specified in paragraph (c) of this section and programmatic services or activities are to be allocated as administrative or program costs to the benefitting cost objectives/categories based on documented distributions of actual time worked or other equitable cost allocation methods.
(3)
Specific costs charged to an overhead or indirect cost pool that can be identified directly as a program cost may be charged as a program cost. Documentation of such charges must be maintained.
(4)
Except as provided at paragraph (d)(1) of this section, all costs incurred for functions and activities of subrecipients and vendors are program costs.
(5)
Costs of the following information systems including the purchase, systems development and operating (e.g., data entry) costs are charged to the program category.
(ii)
Employment statistics information, including job listing information, job skills information, and demand occupation information; and