Allowable costs shall be charged against the following four cost
categories: Administration; training, employment and other (including
supportive services).
(a) Costs are allocable to a particular cost category to the extent
that benefits are received by such category.
(b) The Native American grantee is required to plan, control and
charge expenditures against the aforementioned cost categories.
(c) The Native American grantee is responsible for ensuring that, at
a minimum, subgrant or subcontract recipients plan, control, and charge
expenditures against the aforementioned cost categories.
(d) Administrative costs consist of all direct and indirect costs
associated with the management of the grantee's program. These costs
include but are not limited to: the salaries and fringe benefits of
personnel engaged in executive, fiscal, data collection, personnel,
legal, audit, procurement, data processing, communications, maintenance,
and similar functions; and related materials, supplies, equipment,
office space costs, and staff training. Also included are salaries and
fringe benefits of direct program administrative positions such as
supervisors, program analysts, labor market analysts, and project
directors. Additionally, all
costs of clerical personnel, materials, supplies, equipment, space,
utilities, and travel which are identifiable with these program
administration positions are charged to administration.
(e) Training costs consist of goods and services which directly
affect program participants in a training activity. Training costs
include, but are not limited to, the following: the costs associated
with on-the-job training, salaries, fringe benefits, equipment and
supplies of personnel engaged in providing training; books and other
teaching aids; equipment and materials used in providing training to
participants; classroom space and utility costs; employability
assessment; job related counseling for participants; job search
assistance and labor market orientation; participant allowances, and
tuition and entrance fees which represent instructional costs which have
a direct and immediate impact on participants. In addition, 250 hours of
youth try-out employment is considered an allowable training cost. Youth
try-out employment is that which meets the requirements of Sec. 632.78.
(f) The compensation of individuals who both instruct participants
and supervise other instructors must be prorated among the training and
administration cost categories on the basis of time records or other
equitable means. Similarly, tuition fees, and the costs of supplies used
in the course of both participant instruction and other activities
should be prorated among the benefitting uses.
(g) Employment costs consist of those costs associated with
community service employment and work experience as described in
Sec. 632.79.
(h) Other costs include supportive services, services which are
necessary to enable an individual to participate in training and
assistance under this part, and those described in Sec. 632.80.
(i) Costs which are not readily assignable to the training or
employment cost category should be charged to either the administration
or other category as appropriate.
(j) Unemployment compensation costs are allowable for administrative
staff hired in accordance with the administrative provisions of this
part, and for CSE participants. Unemployment compensation costs are
allowed for work experience only where required by State law.
(k) Travel costs. (1) The cost of participant travel and staff
travel necessary for the administration of programs under the Act are
allowable costs, chargeable to the proper cost category, and must follow
standard Federal travel requirements.
(2) Travel costs of Native American grantee officials, including
staff, board members, and advisory council members are allowable if the
travel and costs specifically relate to programs under the Act. These
costs will be charged to administration. Travel costs for officials of
tribes or organizations belonging to a consortium require advance
written approval from the Chief, DINAP, unless they are also officials
of the Native American grantee organization.
(3) Travel costs for participants using their personal vehicles in
the performance of their jobs are allowable if the employing agency
normally reimburses its other employees in this way. These costs shall
be charged to supportive services.
(4) Travel costs to enable participants to obtain employment or to
participate in programs under the Act are allowable as supportive
services.
(l) Allocation of fixed unit charge. (1) When contractors or
subgrantees bill the Native American grantee with a single unit charge
containing costs which are chargeable to more than one cost category,
the Native American grantee shall charge these costs to the cost
categories in Sec. 632.38. For unit charges such as tuition fees for
which the necessary detail cannot be provided, a reasonable estimate of
the breakdown of the single unit charge among cost categories in
Sec. 632.38 will be sufficient, including for audit purposes. When such
unit charges are normally billed as a single charge and the cumulative
amount of such charges to a service provider does not exceed $25,000
within the grant year, proration will not be required. These costs may
be charged to the category receiving the most benefit.
(2) The provisions of this section shall not apply to vendors
selling or
leasing equipment and attendant service at a commercially established
rate to Native American grantees or subgrantees.
(3) In the case of multiuse equipment there must be a proration of
costs or, if there is a predominant usage relating to one cost category,
a charge shall be made to that category.
(4) Any single cost, such as staff salaries or fringe benefits,
which is properly chargeable to more than one cost category shall be
prorated among the affected categories.
