(a) The costs of administration are that allocable portion of
necessary and allowable costs that are associated with the overall
management and administration of the workforce investment system and
which are not related to the direct provision of workforce investment
activities. These costs can be both personnel and non-personnel and
both direct and indirect.
(b) The costs of administration include the costs associated with
performing the responsibilities of the State and Local Workforce
Investment Boards and of chief elected officials or boards of chief
elected officials required for the local public/private partnership.
The specific responsibilities of these boards and officials include,
but are not limited to, those identified in the sections of the Act
dealing with workforce investment boards and areas and one-stop
systems, (WIA secs. 111(d), 116, 117(d), (e) & (h)(4), and 121(a)),
such as:
(1) Performing overall general administrative functions and
coordination of those functions under WIA title I including:
(i) Preparing program plans, budgets, related schedules, and
amendments or modifications thereto;
(ii) Negotiating MOUs and awarding specific subgrants, contracts,
and purchase orders through appropriate procurement processes,
(iii) Conducting public relations activities which are not related
to program outreach,
(iv) Developing systems and procedures, including information
systems for assuring compliance with program requirements, except:
(A) Those needed for tracking and monitoring of WIA program,
participant, or performance requirements; or
(B) For collecting, storing and disseminating information under the
core services provisions at WIA sections 134(d)(2)(E), (F), (G), (H)
and (I) and information necessary to comply with WIA section 188 and
its implementing regulations.
(v) Coordinating the resolution of findings arising from audits,
reviews, investigations and incident reports, and
(vi) Performing administrative services, including such services as
general legal services, financial management and accounting services,
audit services; and managing purchasing, property, payroll, and
personnel;
(2) Performing oversight responsibilities including monitoring of
WIA programs, projects and subrecipients, and related systems and
processes for compliance with program requirements,
(3) Costs for goods and services required for administration 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) The costs of organization-wide management functions;
(5) Travel costs incurred for official business in carrying out
administrative activities or the overall management of the WIA system;
and
(6) Costs of information systems not related to the tracking and
monitoring of WIA program, participant, or performance requirements; or
for collecting, storing and disseminating information under the core
services provisions at sections 134(d)(2)(E), (F), (G), (H) and (I) of
the Act, (for example, personnel, accounting and payroll systems).
(c)(1) That portion of the costs of One-Stop operators which are
associated with the performance of the administrative functions
described in paragraph (b) of this section are classified as
administrative costs. That portion of the costs of one-stop operators
which are associated with the direct provision of workforce investment
activities are classified as program costs.
(2) Personnel and related non-personnel costs of the recipient's or
subrecipient's staff, including project directors, who perform both
administrative and programmatic services or activities may 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) Costs of staff who provide program services directly to
participants and, where applicable, the first line supervisors and/or
team leaders responsible for those staff are classified as a program
cost.
(4) 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.
(5) The costs of contracts, whether fixed price or cost
reimbursement, awarded for the purpose of obtaining specific goods or
services may be charged to the administration or program category based
on the purpose for which the contract was awarded.
(6) The following information systems and data entry costs are
charged to the program category.
(i) Tracking or monitoring of participant and performance
information;
(ii) Employment statistics information, including job listing
information, job skills information, and demand occupation information;
(iii) Performance and program cost information on eligible
providers of training services, youth activities, and appropriate
education activities;
(iv) Local area performance information; and
(v) Information relating to supportive services and unemployment
insurance claims for program participants;
(7) Continuous improvement activities are charged to administration
or program category based on the purpose or nature of the activity to
be improved. Documentation of such charges must be maintained.
