California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 3 - EMPLOYMENT SERVICES PROGRAMS › Part 1 - EMPLOYMENT AND EMPLOYABILITY SERVICES › Chapter 1.5 - EMPLOYMENT TRAINING PANEL › Article 2 - PROPOSAL PROCESS › Section 4412 - Reasonable Training and Administrative Costs for Budgets

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Allowable ETP costs are those reasonable training and
							 administrative costs in budget based agreements which include salaries, fringe
							 benefits, and operating expenses and equipment necessary to provide training to
							 eligible participants and to administer the training program. These costs shall
							 bear a direct relation to the number of trainees to be retained in the program
							 and the amount of training time specified in the agreement. ETP will only allow
							 the portion of each eligible cost that can be properly allocated to the ETP
							 training project. All costs must be incurred during the term of the agreement,
							 and none of these costs may, in any way, be attributable to any other funding
							 sources, except for employer contributions.
(a) Training costs:
(1) Salaries of those individuals
						  (instructors, instructional aides, trainers, supervisors) providing classroom,
						  laboratory, technology-based distance training, and structured, on-site
						  training to the participants, for hours of actual delivery of instruction, and
						  hours preparatory to instruction. Salaries of those individuals providing
						  training support functions such as curriculum modification and preparation of
						  training materials for the instructors and/or participants.
(2) Payroll taxes, including FICA, FUTA,
						  State Unemployment Insurance, and Employment Training Tax, that are considered
						  by the Department of Labor to be mandatory taxes incurred as business expenses.
						  All payroll taxes should be individually identified.
(3) Fringe benefits are perquisites paid by
						  an employer to employees, either voluntarily or by collective bargaining
						  agreement, in addition to the employees' basic hourly or monthly compensation
						  or remuneration.
(A) Fringe benefits may
						  include one or more of the following:
1.
						  vacation pay;
2. holiday
						  pay;
3. sick leave;
4. health insurance plans;
5. hospitalization coverage;
6. retirement or pension plan;
7. life insurance (if the employer is not the
						  beneficiary); and/or
8. military
						  leave.
(B) The fringe
						  benefit should be automatically and uniformly available to all those covered by
						  the benefit package in comparable employment with the same employer.
(C) Any elective benefits selected on an
						  individual basis, that are not available to all employees of an individual
						  employer, should not be included in the list of fringe
						  benefits.
(4) Operating
						  expenses and equipment costs including consumable supplies, communications,
						  equipment, software and licenses, premises, utilities, housekeeping services,
						  travel, printing, transmission (computer time), system maintenance, and
						  subcontractor and vendor fees directly related to the delivery of training.
(A) Equipment: The cost of equipment used for
						  classroom, laboratory, and technology-based distance training may be claimed
						  for the actual amount of time in use during those training components. The cost
						  of equipment used for structured, on-site training is not allowable. The cost
						  of purchased equipment, less salvage value, shall be prorated based on its
						  useful life. Usefil life shall be determined using the class life established
						  in the most recent version of IRS Publication 946. Useful life for
						  training-related computer hardware and software used in classroom/lab settings
						  shall be three (3) years and one (1) year, respectively. Once the useful life
						  has expired, the equipment or software cannot continue to be claimed as an
						  expense; only service and maintenance costs are allowable.
The contractor's/subcontractor's total cost incurred
							 to lease and/or rent equipment shall not exceed the cost to purchase the same
							 equipment, less salvage value. The contractor/subcontractor must obtain three
							 (3) written bids for leased equipment. Allowable lease/rental costs will be
							 that portion of the total lease/rental cost (or purchase cost less salvage
							 value, whichever is less) allocable to ETP training.
(B) Premises:
1. Premises, other than the facilities or
						  work site of the contractor (i.e., off-site facilities), may be claimed as a
						  training expense if sufficient justification is shown for the need to train at
						  a location other than the contractor's facility or work site.
2. Multiple-employer contractors (MECs) may
						  be reimbursed for a proportional share of actual on-site premise cost if the
						  costs are incurred during classroom, laboratory, or technology-based distance
						  training. Premises cost may include rent, depreciation of building cost,
						  property/liability insurance, property tax, security, parking fees paid by
						  contractor, and facility repair deemed necessary to the project. Each of these
						  costs must be separately identified.
3. If all training takes place at the
						  employer contractor's work site, the contractor's premises costs can only be
						  allowed as an in-kind contribution.
(C) Utilities and Housekeeping: may be
						  claimed for on-site training only if they are additional expenses incurred
						  because of the training program or if the contractor is a MEC.
(D) Subcontractors: shall prepare individual,
						  line-item budgets and are subject to the same limitations and restrictions as
						  the primary contractor. Individual budgets are not required for contract
						  laborers.
(E) Miscellaneous:
Miscellaneous costs shall not exceed ten percent of
							 all other operating equipment and expenses associated with the delivery and
							 administration of the training project. The contractor need not document the
							 breakdown of the items included in this category.
(F) Profits are permitted only for private,
						  for-profit MECs or for subcontractors and shall not exceed five (5) percent of
						  the total training and administrative costs without justification and prior
						  approval.
(5) For costs
						  associated with new hire trainees, the following will be permitted as a
						  training cost:
(A) Staff salaries, fringe
						  benefits, consumable supplies, printing, communications, equipment and
						  software, premises, utilities, housekeeping services, travel, and
						  advertising/promotion of the ETP program that are incurred as a result of the
						  following new hire activities:
1. Recruitment
						  of training participants
2. Trainee
						  intake assessment to determine eligibility
3. Job development, and
4. Job search assistance, and placement in
						  specific jobs.
(6) For costs associated with
						  multiple-employer contract retraining the following may be included as training
						  costs:
(A) Recruitment of participating
						  employers
(B) Assessment of
						  employer-specific job requirements.
(7) In no event shall the training costs
						  allowed in (5) or (6) exceed 8% of the other training costs, except that up to
						  an additional 4% will be allowed subject to Panel approval if the contractor
						  makes a showing that the 8% is not sufficient to provide the contractor with
						  the funds to do necessary recruitment of potential new hire trainees and/or
						  employers.