(a) Administrative cost limitation (section 404(b)(1)).--(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.
(c) The costs of administration are the costs associated with
performing the following functions:
(1) Performing overall general administrative functions and
coordination of those functions under WtW including:
(i) Accounting, budgeting, financial and cash management functions;
(ii) Procurement and purchasing functions;
(iii) Property management functions;
(iv) Personnel management functions;
(v) Payroll functions;
(vi) Coordinating the resolution of findings arising from audits,
reviews, investigations and incident reports;
(vii) Audit functions;
(viii) General legal services functions; and
(ix) Developing systems and procedures, including information
systems, required for these administrative functions;
(2) Performing oversight and monitoring responsibilities related to
WtW 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.
(i) Tracking or monitoring of participant and performance
information;
(ii) Employment statistics information, including job listing
information, job skills information, and demand occupation information;
and
(iii) Local area performance information.
