Register November 2008 No. 635
Chapter DWD 805
ALLOWABLE COST UNDER THE JOB TRAINING PARTNERSHIP ACT OF 1982
Allocation of joint costs.
Standards for selected items of cost.
Ch. DWD 805 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
In this chapter, the following words and phrases have the designated meaning, unless otherwise provided.
"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.
"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.
"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.
"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.
"Cost categories" means the allowable classifications for charges to JTPA grants: training, administration, and participant support. (20 CFR 629.38
"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.
"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.
"Division" means the division of employment and training within department of workforce development.
"Division grantee" means an organization or agency receiving a grant of JTPA funds directly from the division.
"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.
"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.
"Grantee" means an organization or agency receiving a grant of JTPA funds, either directly from the division or from another grantee.
"Grantor" means the division, an organization or an agency from which the grantee receives its grant.
"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.
"Idle facilities" means completely unused facilities that are excess to the organization's current needs.
"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.
"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.
"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.
"Participant support", when used as a cost category name means those non-training costs which affect participants.
"Prior approval" means securing advance written permission to incur costs are designated as requiring prior approval.
"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.
"Regulations" means department of labor-employment and training administration's implementing regulations for programs under the Job Training Partnership Act, 20 CFR Parts 626
, or other authorities in pursuit of remedies and sanctions available outside the Act.
"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.
"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.
"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
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
To be allowable, grantee costs shall meet the following general criteria:
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.
Be authorized or not prohibited under federal, state or local laws or regulations.
Conform to any limitations or exclusions set forth in this chapter or other governing limitations as to types or amounts of cost items.
Be consistent with policies, regulations, and procedures that apply uniformly to other activities of the agency of which the grantee is a part.
Be accorded consistent treatment through application of generally accepted accounting principles appropriate to the circumstances.
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
Cr. Register, July, 1986, No. 367
, eff. 8-1-86.
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:
Benefits both the grant and other work and can be distributed in reasonable proportion to the benefits received.
Is necessary to the overall operation of the organization, although a direct relationship to any particular cost objective cannot be shown.
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.
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.
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:
The nature and extent of services provided and their relevance to the JTPA programs.