Download - Human Services Cost Principles
![Page 1: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/1.jpg)
Human Services Cost
Principles
March 2001
![Page 2: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/2.jpg)
Introduction
These cost principles apply to those who have DHS contracts regardless of the type of contract.
![Page 3: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/3.jpg)
How do the Cost Principles Apply?
The principles still apply regardless of the amount of the State or Federal funds received through Human Services.
![Page 4: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/4.jpg)
Which Principles Apply?
Human Service Cost PrinciplesApplicable Federal CircularsDHS contractors must be in compliance with both
![Page 5: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/5.jpg)
Obtain a copy of Human Services
Cost Principles by:
Calling Devon Nish at (801) 538-4117Sending an e-mail request to [email protected]
![Page 6: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/6.jpg)
What do I need to know about
the cost principles?The cost principles do not address every item that could be incurred in a federal grant. Allowability should be addressed by examining similar items of cost in the applicable circular.
![Page 7: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/7.jpg)
A. General Cost Principles1. Related Party Costs2. Personal Expenses
B. Cost Reimbursement Contract Cost Principles3. Administrative Costs4. Compensation for Personal Services
![Page 8: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/8.jpg)
Direct Costs (A-122)
Identified specifically with a particular final cost objective or other direct activity.Some are not allowable but are treated as direct costs in order to share the organizations indirect costs.
![Page 9: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/9.jpg)
Indirect Costs (A-122)
Cost incurred for common objectives but cannot be readily identified to final cost objective.Costs that benefit direct costs.Examples include depreciation, general administration expenses, cost of operating and maintaining facilities.
![Page 10: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/10.jpg)
Direct Allocation Method (A-122)
All costs treated as direct costs except general and administration expenses.
![Page 11: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/11.jpg)
Direct Allocation Method (A-122)
Joint costs are prorated as direct costs using a base most appropriate to the particular cost being prorated.
![Page 12: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/12.jpg)
DHS Cost Principles limiting
Administrative CostsAdministrative costs
of each contract shall not exceed 25% of program costs of the contract, unless prior approval is obtained from the Executive Director of DHS.
![Page 13: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/13.jpg)
Definition of administrative
cost:Personnel, payroll, purchasing, management information systems, budget and planning, risk management, legal council, accounts payable, auditing.Includes all allocable share of office supplies, telephone expenses, etc.
![Page 14: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/14.jpg)
Personal ServicesHuman Services
If total work time exceeds 40 hours and the contractor wants reimbursement for DHS programs (1) a perpetual time record must be maintained and (2) prior written approval must be obtained.
Cost Principles
![Page 15: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/15.jpg)
Unallowable Training Expenses
Cost of amusement, diversion, social activities, ceremonials.
![Page 16: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/16.jpg)
Related Party Expenses
DHS Cost PrinciplesThe contractor shall not
make payments to related parties in any category of Expenditure (Administration, Capital, or Program) without the prior written consent of the State.
![Page 17: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/17.jpg)
Interest on Debt on borrowed capital or temporary use of endowment funds IS NOT ALLOWABLE except when the interest on debt is used to acquire or replace capital assets –after 9/95 (under certain conditions).
![Page 18: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/18.jpg)
Other Expenditures notallowed under A - 122
Bad DebtsFund-raising costsLobbying costsExcess of costs over income on any awardOrganizational costs
![Page 19: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/19.jpg)
Other Expenditures not allowed under A-122
Advertising designed solely to promote the organization.Costs of meetings or other events related to fund raising or other organizational activities include cost of displays, demonstrations, and exhibits.
![Page 20: Human Services Cost Principles](https://reader036.vdocuments.site/reader036/viewer/2022082817/56812ad5550346895d8eb855/html5/thumbnails/20.jpg)
Other Expenditures not allowed
under A-122 (continued)
Costs of selling and marketing any products or services of the organization.