(a) General. To be allowable, a cost must be necessary and
reasonable for proper and efficient administration of the grantee's
program, be allocable thereto under these principles, and, except as
provided herein, not be a general expense required to carry out the
overall responsibilities of the grantee. Costs charged to the program
shall be consistent with those normally allowed in like circumstances
and, with applicable State and local law, rules or regulations as
determined by the Native American grantee.
(b) Unless otherwise indicated below, direct and indirect costs
shall be charged in accordance with 41 CFR 29-70 and 41 CFR 1-15.7.
(c) Costs associated with repairs, maintenance, and capital
improvements of existing facilities used primarily for programs under
the Act are allowable. Additionally, the costs of home repair,
weatherization and rehabilitation are allowable when the work is
performed on low income housing as defined in Sec. 632.4.
(d) Section 401 funds may be used to pay the cost of incorporating a
PIC, other planning body or consortium administrative entity for the
purpose of carrying out programs under the Act. These costs are
chargeable to administration.
(e) Costs which are billed as a single unit charge do not have to be
allocated or prorated among the several cost categories but may be
charged entirely to training when the agreement:
(1) Is for classroom training;
(2) Is fixed unit price; and
(3) Stipulates that full payment for the full unit price will be
made only upon completion of training by a participant and placement of
the participant into unsubsidized employment in the occupation trained
for and at not less than the wage specified in the agreement.
