Register November 2008 No. 635
Chapter DWD 805
ALLOWABLE COST UNDER THE JOB TRAINING PARTNERSHIP ACT OF 1982
DWD 805.02 General principles.
DWD 805.03 Allocation of joint costs.
DWD 805.04 Indirect costs.
DWD 805.05 Standards for selected items of cost.
Ch. DWD 805 Note
Note: Chapter ILHR 805 was renumbered to chapter DWD 805 under s. 13.92 (4) (b) 1., Stats., and corrections made under s. 13.92 (4) (b) 7., Stats.,
Register November 2008 No. 635.
DWD 805.01
DWD 805.01
Definitions. In this chapter, the following words and phrases have the designated meaning, unless otherwise provided.
DWD 805.01(2)
(2) "Acquisition cost" means the invoice unit price of an item of equipment, net of any applicable credits or trade-in allowances, but including the costs of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protective in-transit insurance, freight, and installation shall be included in or excluded from acquisition cost in accordance with the organization's regular written accounting practices.
DWD 805.01(3)
(3) "Administration", when used as a cost category name, means all direct and indirect costs which are necessary to effectively manage a Job Training Partnership Act grant, including administrative costs of subgrantees and contractors and comprised of goods and services which do not immediately affect participants.
DWD 805.01(4)
(4) "Applicable credits" means those receipts or reduction of expenditure-type transactions which offset or reduce expense items allocable to grants as direct, joint or indirect costs. Examples of such transactions are: purchase discounts; rebates or allowances; recoveries or indemnities on losses; and adjustments of overpayments or erroneous charges.
DWD 805.01(5)
(5) "Cognizant federal agency" means the federal agency that has been assigned responsibility by the office of management and budget for approving the indirect cost proposal of a specific state or local government, school or university, or other nonprofit organization.
DWD 805.01(6)
(6) "Cost categories" means the allowable classifications for charges to JTPA grants: training, administration, and participant support. (
20 CFR 629.38)
DWD 805.01(7)
(7) "Cost objectives" means a pool, or area established for the accumulation of costs. Such areas include organizational units, functions, objects or items of expense, as well as ultimate cost objectives including specific grants, cost categories or program activities.
DWD 805.01(8)
(8) "Direct cost" means any cost which can be identified specifically with one particular cost objective. Examples are training payments under On-The-Job-Training contracts, books and other teaching aids, and needs based payments.
DWD 805.01(9)
(9) "Division" means the division of employment and training within department of workforce development.
DWD 805.01(10)
(10) "Division grantee" means an organization or agency receiving a grant of JTPA funds directly from the division.
DWD 805.01(11)
(11) "Equipment" means an article of nonexpendable tangible personal property having a useful life of more than one year and an acquisition cost of $500 or more per unit. An organization may use its own definition provided that it at least includes all nonexpendable tangible personal property as defined herein.
DWD 805.01(12)
(12) "Facilities" means land and buildings or any portion thereof, equipment individually or collectively, or any other tangible capital asset, wherever located, and whether owned or leased by the organization.
DWD 805.01(13)
(13) "Grantee" means an organization or agency receiving a grant of JTPA funds, either directly from the division or from another grantee.
DWD 805.01(14)
(14) "Grantor" means the division, an organization or an agency from which the grantee receives its grant.
DWD 805.01(15)
(15) "Idle capacity" means the unused capacity of partially used facilities. It is the difference between that which a facility could achieve under 100% operating time and the extent to which the facility was actually used to meet demands during the accounting period.
DWD 805.01(16)
(16) "Idle facilities" means completely unused facilities that are excess to the organization's current needs.
DWD 805.01(17)
(17) "Indirect cost" means any general management cost, incurred for a purpose benefiting more than one cost objective, which is not readily assignable to the cost objectives benefited without effort disproportionate to the results achieved.
DWD 805.01(18)
(18) "Joint cost" means any cost which benefits more than one cost objective, but which is readily assignable to the cost objectives benefited. Examples are the salary of a staff person teaching both a vocational skills program and an employer-linked training program, or the salary of an individual who administers and provides training for a program.
DWD 805.01(19)
(19) "Participant" means any individual who has been determined eligible for participation upon intake and started receiving subsidized employment, training or services (except post-termination services) funded under the Job Training Partnership Act of 1982, following intake, except for an individual who receives only outreach and/or intake and assessment services.
DWD 805.01(20)
(20) "Participant support", when used as a cost category name means those non-training costs which affect participants.
DWD 805.01(21)
(21) "Prior approval" means securing advance written permission to incur costs are designated as requiring prior approval.
DWD 805.01(22)
(22) "Private industry council", or "PIC", means the council established for each SDA in accordance with section 102 of the Job Training Partnership Act of 1982.
DWD 805.01(23)
(23) "Regulations" means department of labor-employment and training administration's implementing regulations for programs under the Job Training Partnership Act,
20 CFR Parts 626 through
638, or other authorities in pursuit of remedies and sanctions available outside the Act.
DWD 805.01(24)
(24) "Service delivery area", or "SDA", means a geographic area designated by the governor for administering JTPA funds in accordance with section 101 of the Job Training Partnership Act of 1982.
DWD 805.01(25)
(25) "Subgrantee" means an organization or agency receiving a grant of JTPA funds from any grantee. "Training", when used as a cost category name, means goods and services which directly and immediately affect participants in either a work environment or training setting.
DWD 805.01(26)
(26) "Training", when used as a cost category name, means those costs of goods and services which directly and immediately affect program participants in either a work environment or training setting.
DWD 805.01 History
History: Cr.
Register, July, 1986, No. 367, eff. 8-1-86; am. (1),
Register, November, 1995, No. 479, eff. 12-1-95; correction in (9) made under s.
13.92 (4) (b) 6., Stats.,
Register November 2008 No. 635.
DWD 805.02
DWD 805.02
General principles. To be allowable, grantee costs shall meet the following general criteria:
DWD 805.02(1)
(1) Be necessary and reasonable for proper and efficient administration of the grant programs, be allocable to the grant programs under this chapter and, except as specifically provided in this chapter, not be a general expense required to carry out the overall responsibilities of the grantee.
DWD 805.02(2)
(2) Be authorized or not prohibited under federal, state or local laws or regulations.
DWD 805.02(3)
(3) Conform to any limitations or exclusions set forth in this chapter or other governing limitations as to types or amounts of cost items.
DWD 805.02(4)
(4) Be consistent with policies, regulations, and procedures that apply uniformly to other activities of the agency of which the grantee is a part.
DWD 805.02(5)
(5) Be accorded consistent treatment through application of generally accepted accounting principles appropriate to the circumstances.
DWD 805.02(6)
(6) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period, unless specifically authorized.
DWD 805.02 History
History: Cr.
Register, July, 1986, No. 367, eff. 8-1-86.
DWD 805.03(1)
(1) A cost is allocable to a particular cost objective, such as a title, program activity or cost category, in accordance with the relative benefits received. A cost is allocable to a given grant if it is treated consistently with other costs incurred for the same purpose in like circumstances and if it:
DWD 805.03(1)(b)
(b) Benefits both the grant and other work and can be distributed in reasonable proportion to the benefits received.
DWD 805.03(1)(c)
(c) Is necessary to the overall operation of the organization, although a direct relationship to any particular cost objective cannot be shown.
DWD 805.03(2)
(2) Any cost allocable to a particular grant or other cost objective under this chapter cannot be shifted to other federal grants to overcome funding deficiencies, or to avoid restrictions imposed by law or by the terms of the grant.
DWD 805.03(3)
(3) For audit purposes, a written plan for allocation of costs shall be necessary to support the distribution of any joint costs related to the grant. All costs included in the plan shall be supported by formal accounting records which will substantiate the propriety of eventual charges.
DWD 805.03(4)
(4) The allocation plan of the grantee shall cover all joint costs as well as costs to be allocated under plans of other organizational units which are to be included in the costs of the JTPA programs. The cost allocation plans shall be presented in a single document. The allocation plan shall contain, but not necessarily be limited to, the following:
DWD 805.03(4)(a)
(a) The nature and extent of services provided and their relevance to the JTPA programs.
