(a)(1) Allowable costs under Title III shall be planned, controlled,
and charged by either the State or the substate grantee against the
following cost categories: rapid response services, basic readjustment
services, retraining services, needs-related payments and supportive
services, and administration. Costs shall be reported to the Secretary
of Labor in accordance with the reporting requirements established
pursuant to Sec. 631.15 of this part.
(2) All costs shall be allocable to a particular cost category to
the extent that benefits are received by such category; and no costs
shall be chargeable to a cost category except to the extent that
benefits are received by such category.
(b) Rapid response services shall include the cost of rapid response
activities identified at section 314(b) of the Act.
(1) Staff salary and benefit costs are chargeable to the rapid
response services cost category only for that portion of staff time
actually spent on rapid response activities.
(2) All other costs are chargeable to the rapid response services
cost category only to the extent that they are for rapid response
purposes.
(c) Basic readjustment services shall include the cost of basic
readjustment services identified at section 314(c) of the Act, except
that the cost of supportive services under section 314(c)(15) of the Act
shall be charged to the needs-related payments and supportive services
cost category, as provided in paragraph (e) of this section.
(d) Retraining services shall include the cost of retraining
services identified at section 314(d) of the Act.
(e) Needs-related payments and supportive services shall include the
cost of needs-related payments identified in section 314(e) of the Act,
and supportive services identified in section 4(24) of the Act and
provided for in section 314(c)(15) of the Act.
(f)(1) Administration shall include the costs incurred by recipients
and subrecipients in the administration of programs under Title III of
the Act, and shall be that portion of necessary and allowable costs
which is not directly related to the provision of services and otherwise
allocable to the cost categories in paragraphs (b) through (e) of this
section. The description of administrative costs in subpart D of part
627 of this chapter shall be used by States and substate grantees as
guidance in charging administration costs to Title III programs.
(2) Administration does not include the costs of activities under
section 314(b) of the Act and which are provided for in paragraph (b) of
this section.
(3) Administration shall include Title III funds used for
coordination of worker adjustment programs with the Federal-State
unemployment compensation system and with Chapter 2 of Title II of the
Trade Act of 1974 (19 U.S.C. 2271, et seq.) and part 617 of this chapter
(sections 311(b)(10) and 314(f)).
