Administrative Costs and Budgets

1. Administrative Costs and Budgets 2014 YouthBuild Webinar Series

2. Topics of the session: Administrative Costs Indirect Costs Budgets

3. Administrative Costs Webinar Title Date 2011 YouthBuild Webinar Series

4. Administrative Costs Definition • 20 CFR 667.220(a) • Function based • Can be both direct and indirect • Allocable portion not related to direct program services • Direct charged to single objective, shared split across objectives, or indirect

5. YouthBuild Administrative Cost Limitation • Limitation of administrative cost is found on your grant agreement • 15% Administrative Cost Limitation • New SGA for 2013 grants reduces the administrative limitation to 10%.

6. Types of Administrative Cost • Direct Administrative cost • Shared or split across • Indirect Administrative cost

7. Administrative Functions • Overall general administrative functions • Accounting, financial & cash management • Procurement • Property management • Personnel management • Payroll • Coordinating resolution of findings • Audit, monitoring, investigations

8. Administrative Functions • Goods & services • Required for administrative functions • Travel costs • Carry out administrative activities • Related to overall management • Awards for administrative functions • Payroll service for staff

9. MODERATOR Name, TitleOrganization Affiliation Impromptu Quiz!

10. Identify Administrative Cost • Rent or space • Utilities • Phones • Supplies • Travel • Procurement • Training a. Program cost b. Admin cost c. Both

11. Identify Administrative Cost Rent or space c. Both Utilities c. Both Phones c. Both Supplies c. Both Travel c. Both Procurement b. Admin cost Training a. Program cost

12. PRESENTER Name, TitleOrganization Affiliation Indirect Costs

13. What are Indirect Costs? • Indirect Costs • Not readily identifiable • Incurred for common joint objectives • Grant Agreement Part IV Special Clauses • Required for Non-profits – 2 CFR Part 230 Appendix A (A-122) • Administrative or Program

14. The process used to distribute costs based on the concept of benefits received Benefit to grant program and cost objectives in particular It’s a billing rate derived from a basis What are Indirect Costs?

15. Administrative Costs vs. Indirect Indirect Cost based on Direct Salaries Approved Rate: 18%* Grant Budget: *Salary & Wages $45,000 Salaries charged to grant: $40,000 18% x $40,000 = $7,200 Administrative Grant Limitation Percentage of Total award – Youthbuild 15% Total Award: $100,000 Admin Limit: 15% Total Admin: $15,000

16. Administrative Costs vs. Indirect • Total Administrative : $15,000 • Total Indirect Costs: $7,200 • Total Direct Costs : $7,800

17. Administrative Costs vs. Indirect Indirect Cost based on Direct Salaries Approved Rate: 25%* Grant Budget: *Salary & Wages $500,000 Salaries charged to grant: $485,000 25% x $ 485,000 = $121,250 Administrative Grant Limitation Percentage of Total award – Youthbuild 15% Total Award: $750,000 Admin Limit: 15% Total Admin: $112,000

18. Question

20. Budget Requirement • SGA (Solicitation for Grants Application) required • SF424a • 29 CFR Part 95 and 97

21. Budget Clauses • Found on Part IV of your grant agreement • Budget Line Item Flexibility • Mix and Match

22. What do I need to have on my Budget? • Adequate documentation • Budgeted to actual comparison • Be able to provided walkthrough from grant budget to SF424a • Budget for shared costs with other programs

23. Question

24. Training Resources For additional training: http://etareporting.workforce3one.org For the Indirect cost determination guide: http://www.dol.gov/oasam/programs/boc/costdeterminationguide/cdg.pdf