North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 20 - EMPLOYMENT AND TRAINING › Subchapter B - ADMINISTRATIVE PROVISIONS › Section .0300 - FISCAL STANDARDS › Section 20B .0303 - COST STANDARDS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For cost
				  reimbursement contracts and subgrants, the subrecipient may elect to receive
				  its costs by advance or by reimbursement, unless the Division determines to
				  condition funding by requiring reimbursement, which shall usually be limited to
				  interruptions in federal funding or the absence of assurance of the fiscal
				  integrity of the subrecipient.
(b)
				  Subrecipients shall include in expenditure or reimbursement reports all
				  allowable costs actually incurred during the report period. Allowable costs or
				  expenditures and the frequency and format of financial reporting will be
				  determined by the Division and by federal law and reporting
				  requirements.
(c) Cost standards
				  may vary according to the type of contract or subgrant agreement executed
				  between the Division and the subrecipient.
(d) Any subgrantee or division contractor
				  that intends to recover, by advance or reimbursement, must have an approved
				  indirect cost rate negotiated with its cognizant agency or, if it has no
				  federal cognizant agency, with the Division. A subgrantee or division
				  contractor that reimburses or advances payment for indirect costs to its
				  contractors and a contractor that reimburses or advances payments for indirect
				  costs to its subcontractors are responsible for ascertaining the existence of,
				  or negotiating those indirect cost rates.
(e) Income derived from activities that have
				  been funded by JTPA funds, with the exception of on-the-job training and tryout
				  employment, is program income and is subject to division instructions on
				  program income. Any such income shall increase the funds for that program and
				  shall be used for program purposes (without regard, however, to cost
				  categories) unless otherwise specifically prohibited. Program income received
				  by state agencies, local education agencies and quasi-public non-profit
				  organizations, such as private non-profit hospitals, may be exempted from all
				  or some of the program income instructions on a showing to the Division of good
				  cause for the exemption.
(f)
				  In-kind contributions of services and donations of property are generally
				  allowable only to offset disallowed costs, except that in-kind contributions
				  and donations may be used for matching fund purposes. Offset is only
				  permissible with the prior written approval of the Division.
(g) The matching contribution required for
				  some employment and training activities may, without limitation, consist of:
(1) Charges incurred by a subrecipient as
				  project costs including charges not requiring cash outlays during the subgrant
				  or contract period;
(2) Federal
				  funds, only to the extent the authorizing legislation specifically permits
				  their use as matching funds;
(3)
				  Project costs financed with cash contributed or donated to the subrecipient by
				  non-federal third parties;
(4)
				  Employer's on-the-job training contributions;
(5) Full time equivalency accruals in the
				  community college system earned by Title III participants (available for Title
				  III only);
(6) Unemployment
				  benefits paid from state funds to participants (limited to 50 percent of the
				  matching funds contribution);
(7)
				  Employers' expenditures on behalf of Title III participants, such as the cost
				  associated with outplacement centers, retraining programs, resume services and
				  the like, during the period of the subgrant or contract and to the extent that
				  the activities conducted are allowable activities within the contract or
				  subgrant;
(8) Education costs,
				  which may be based on a proportion of actual costs relative to the
				  participation of participants in the education services, plus extraordinary
				  costs of education services, provided to JTPA participants;
(9) In-kind services, to the extent approved,
				  that provide services that are reasonable and necessary for the proper and
				  efficient operation and accomplishment of program or project
				  objectives;
(10) Donated property
				  that is necessary and reasonable for the proper and efficient operation and
				  accomplishment of program or project objectives, which may be considered as
				  part of the matching share on approval of the Division; and
(11) Such other property, services,
				  expenditures or costs as the Director may determine contributes to program or
				  project objectives.