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4300 Allowable Expenses Under Title IV-E

Title IV-E Training Contracts Financial Handbook February 2013

This section provides an overview of the two types of expenses that may be included in a contract that DFPS enters into with a university to obtain Title IV-E training services. Two types of expenses are administrative and training. Each expense is reimbursed at a different rate of federal financial participation (FFP).

Administration

States with approved Title IV-E state plans are reimbursed at a 50 percent matching rate for the costs of the administrative activities that the Secretary of the U.S. Department of Health and Human Services considers necessary for the proper and efficient administration of the plan.

Certain subcategories of administrative costs, including training, are reimbursable at a higher rate, as discussed under Training, below.

See 4310 Allowable Administrative Expenditures Under Title IV-E.

Training

Title IV-E training expenses are a subset of administrative services, but are reimbursable at a higher rate than other types of administrative services.

Title IV-E training costs are those associated with attending or participating in IV-E-approved training. These training costs are reimbursable at 75 percent. Unlike general training, IV-E training must be specifically related to the IV-E program.

See 45 C.F.R. §1356.60(c) for further guidance on the types of activities that are considered to be specifically related to Title IV-E.

Title IV-E training expenses include:

  •  salaries;

  •  fringe benefits; and

  •  travel expenses.

See 4320 Allowable Training Expenses Under Title IV-E.

4310 Allowable Administrative Expenditures Under Title IV-E

Title IV-E Training Contracts Financial Handbook February 2013

Costs directly related to the administration of the Title IV-E training program are allowable if they are necessary, reasonable, and allocable in accordance with OMB Circular A-21, Cost Principles for Educational Institutions.

45 C.F.R. §§95.507 and 1356.60

Title IV-E allowable administrative costs are reimbursable at 50 percent and may include:

  •  salaries;

  •  fringe benefits;

  •  travel;

  •  supplies;

  •  equipment; and

  •  other operating expenses.

If a contractor attempts to charge a fee for professional services to the contract contingent upon recovery or increased claiming from the federal government, DFPS does not allow the fee.

OMB Circular A-21, paragraph J.37, Professional Service Costs

Decision No. 1660, Departmental Appeals Board, U.S. Department of Health and Human Services

If DFPS contractors have professional services contracts with consultant firms and are paying the firms a set fee or a set fee per hour:

  •  the fee may be charged to the DFPS contract, as long as DFPS considers the fee to be reasonable; and

  •  the university must provide a cost or price analysis and document the analysis in the university’s procurement files.

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