3. Basic Grants Management Principles

Administrative Costs

The Tribal TANF and Tribal Child Care programs both limit the amount of administrative cost that can be charged. The allowable amounts vary between the programs, as does the definition of these costs.

Administrative costs include the organization-wide management functions of accounting, budgeting, coordination, direction, and planning, as well as the management of payroll, personnel, property, and purchasing. Such costs can be for either personnel or non-personnel functions.

CCDF:

Tribal Child Care funding is broken down into three parts. The Mandatory and Discretionary Funds categories are allocated on a per-child amount basis. Each grantee also receives a Discretionary Funds base amount of $20,000. (Note: It is not necessary to track whether expenditures are mandatory or discretionary.) Of total mandatory and discretionary expenditures, no more than 15% can be administrative (see 45 CFR 98.83(g)). The base amount is not subject to the administrative limitation and is excluded from the calculation. Administrative costs include:

• Salaries of staff performing administrative functions;
• Planning/developing;
• Plan preparation;
• Developing agreements;
• Monitoring compliance;
• Preparing reports;
• Public hearings;
• Maintaining complaints;
• Coordination activities;
• Audit resolution;
• Program evaluation;
• Personnel management;
• Travel, equipment rental, supplies, etc. for administrative staff and/or functions;
• Audit services; and
• Indirect costs.
  

The following are not categorized as administrative costs:

• Eligibility (re)determinations;
• Preparation/participation in judicial hearings;
• Recruitment, licensing, inspection of child care providers;
• Reviews & supervision of placements;
• Rate setting;
• Resource and referral services;
• Training of child care staff; and
• Establishment and maintenance of computerized information systems.

TANF:

For the Tribal TANF program, ACF will negotiate a limitation on administrative costs with each Tribal TANF applicant, based on the applicant's justification for its proposed administrative cost. The negotiated limit may not exceed 35% in year 1, 30% in year 2, and 25% in year 3 and thereafter. Activities, personnel, and related costs that fall within the definition of "administrative cost" in Sec. 286.5 are subject to the limit. Indirect costs are based on the rate negotiated by the Tribe with the BIA or, where applicable, the Department of Health and Human Service's Division of Cost Allocation and applied to the administrative portion of the grant; this is considered part of the total administrative costs.

Costs which are not considered to be administrative include direct costs of providing services, e.g., costs of providing diversion benefits and services, providing program information to clients, screening and assessment, development of employability plans, work activities, post-employment services, work supports, and case management. Information technology and computerization for Tribal TANF tracking, data entry, and monitoring, including personnel and other costs associated with the automation activities needed for these purposes, are excluded from the administrative cost cap, even if they otherwise fall within the definition of "administrative costs."

If the Tribe has expended the maximum toward administrative costs in the previous year and has reserved or carryover funds available, no administrative costs associated with providing the assistance can be charged to the prior year carryover funds.

For Additional Information on Administrative Costs:

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