5101:9-1-04 Administrative costs.

(A) Administrative/operational costs are the costs incurred in the effective and efficient management of a federal grants program.

(1) Administrative/operational costs are incurred for a common purpose benefiting more than one program.

(2) Administrative/operational costs do not include costs that can be assigned to a specific program; e.g., TANF administration, Workforce Investment Act (WIA) administration.

(3) The general principles and standards for determining costs for federal awards carried out through grants, cost reimbursement contracts, and other agreements with state and local government agencies, found in 2 C.F.R. part 225 and described in rule 5101:9-1-15 of the Administrative Code, apply to the allowability for charging administrative/operational costs to these federal programs. Examples of administrative costs include, but are not limited to:

(a) Costs not associated with providing program services to individuals, including staff performing administration and coordination functions;

(b) Preparation of program plans and budgets; and

(c) Costs for goods and services required for administration, including costs for supplies, equipment, travel, postage, utilities, office space rental, and maintenance, provided such costs are not classified as administrative costs for providing program services.

(B) Shared administrative costs.

(1) Shared administrative costs are incurred for a common purpose benefiting more than one major function and are not readily assignable to specific programs or cost pools.

(2) In a county department of job and family services (CDJFS) or a combined agency, staff are identified with one or more programs and the information is imported to the Ohio department of job and family services (ODJFS) via the county finance information system (CFIS).

(C) Administrative costs associated with the major program area categories and ODJFS acknowledged CDJFS function or program cost category are grouped into cost pools. Cost pools are based on the program activity to which they relate. Expenditures reported through cost pools represent operating costs of the local agency. Administrative costs linked to direct casework activity are measured and allocated to various federal funding sources and programs through the random moment sample (RMS) time study.

(1) Income maintenance administrative costs.

(a) "Income maintenance (IM) administrative costs" are costs that benefit one or more IM programs. The IM cost pool consists of costs relating to the administration of various IM programs and may include work activities under prevention, retention, and contingency (PRC), Ohio works first (OWF), or food assistance employment and training (FAET). In a CDJFS, this cost category may also include WIA costs.

(i) This cost pool includes staff identified to IM through the shared costs distribution, the IM administrator, and staff performing IM functions when IM activities are performed under the direction of the IM administrator. This cost pool also includes staff performing both IM and WIA functions, as well as administrators who supervise the staff performing both IM and WIA functions.

(ii) The ODJFSacknowledged CDJFS function or program cost category includes direct or shared ODJFS acknowledged CDJFS functions or program costs for IM programs assigned by the board of county commissioners to be administered by the county agency.

(b) The local agency shall report IM administrative costs on the JFS 02827 "Public Assistance (PA) Quarterly Financial Statement" in accordance with rule 5101:9-7-29 of the Administrative Code and allocated by the process described in paragraphs (C)(1)(b)(i) to (C)(1)(b)(iii) of this rule.

(i) In a CDJFS or a combined agency, staff are identified with one or more programs and the information is imported to ODJFS via the quarterly report of full time equivalent (FTE) positions in CFIS as IM combined.

(ii) Administrative costs associated with the IM program area are placed in the IM cost pool along with the IM portion of shared costs in accordance with rule 5101:9-1-05 of the Administrative Code. Administrative costs associated with the workforce program area may be placed in the IM cost pool along with the workforce portion of shared costs in accordance with rule 5101:9-1-05 of the Administrative Code.

(iii) Administrative costs are distributed based on percentages derived from the results of the RMS in accordance with rule 5101:9-7-20 of the Administrative Code.

(2) Social service administrative costs.

(a) "Social service (SS) administrative costs" are costs that benefit one or more SS programs. The SS cost pool consists of costs relating to the administration of various SS programs, including work activities under PRC, OWF, FSET, and specific IM or WIA programs, if these programs are performed by SS staff.

(i) This cost pool includes staff identified to SS through the shared costs distribution, the SS administrator, and staff performing SS functions when SS activities are performed under the direction of the SS administrator. This cost pool also includes staff performing both SS and WIA functions, as well as administrators who supervise the staff performing both SS and WIA functions.

(ii) The ODJFS acknowledged CDJFS function or program cost category includes direct or shared ODJFS acknowledged CDJFS function or program costs for programs assigned by the board of county commissioners to be administered by the county agency.

(b) The local agency shall report SS administrative costs on the JFS 02827 in accordance with rule 5101:9-7-29 of the Administrative Code and allocated by the process described in paragraphs (C)(2)(b)(i) to (C)(2)(b)(iii) of this rule.

(i) In a CDJFS or a combined agency, staff are identified with one or more programs and reported as direct or apportioned direct SS and the information imported to ODJFS via the quarterly report of FTE positions in CFIS.

(ii) Administrative costs associated with the SS program area are placed in the SS cost pool along with the SS portion of shared costs in accordance with rule 5101:9-1-05 of the Administrative Code. Administrative costs associated with the workforce program area may be placed in the SS cost pool along with the workforce portion of shared costs in accordance with rule 5101:9-1-05 of the Administrative Code.

(iii) Administrative costs are distributed based on percentages derived from the results of the RMS in accordance with rule 5101:9-7-20 of the Administrative Code.

(3) Workforce administrative costs.

(a) "Workforce administrative costs" are costs that directly benefit one or more WIA programs. These costs include staff identified to workforce through the shared costs distribution; the workforce administrator, if the administrator only supervises staff who solely perform workforce activities, and staff performing workforce functions, if the staff performs solely workforce activities.

(b) The local agency shall report workforce administrative costs on the JFS 02827 in accordance with rule 5101:9-7-29 of the Administrative Code and allocated by the process described in paragraphs (C)(3)(b)(i) to (C)(3)(b)(iii) of this rule.

(i) In a CDJFS or a combined agency, workforce staff are identified with one or more programs by the quarterly report of FTE positions and the information imported to ODJFS via the quarterly report of FTE positions in CFIS.

(ii) In a CDJFS without staff who work solely on WIA activities, administrative costs associated with the workforce program area are placed in the IM or SS cost pool along with the workforce portion of shared costs in accordance with rule 5101:9-1-05 of the Administrative Code. Administrative costs are distributed based on percentages derived from the income maintenance random moment sample (IMRMS) or social service random moment sample (SSRMS) results in accordance with rule 5101:9-7-20 of the Administrative Code.

(iii) In a CDJFS with staff who work solely on WIA activities, administrative costs associated with the workforce program areas and the staff dedicated to the WIA programs are placed in the WIA cost pool along with the workforce portion of shared costs in accordance with rule 5101:9-1-05 of the Administrative Code. Administrative costs are distributed based on percentages derived from the workforce random moment sample (WFRMS) results in accordance with rule 5101:9-7-20 of the Administrative Code. Any staff who work on both IM and WIA activities, as well as the administrators who supervise those staff, are placed in the IM or SS cost pool.

(4) Child support administrative costs.

(a) "Child support (CS) administrative costs" are all CS expenditures with the exception of direct Title IV-D or non-IV-D costs, shared costs, and countywide central service plan payments. The CS cost pool consists of costs relating to the administration of the CS program.

(i) This cost pool includes salaries, benefit related compensation, and operation costs of all employees assigned to CS functions, as well as administrative contracts related to various CS program functions.

(ii) Administrative costs included in this cost pool are for administrative activities related to location of absent parents and putative fathers; paternity establishment; support order establishment, modifications, and enforcement; and distribution and disbursement of support collections.

(b) The local agency shall report CS administrative costs on the JFS 02750 "Child Support Enforcement Agency (CSEA) Quarterly Financial Statement" in accordance with rules 5101:9-7-29 and 5101:9-6-83 of the Administrative Code and allocated by the process described in paragraphs (C)(4)(b)(i) to (C)(4)(b)(iii) of this rule.

(i) In combined agencies, CS staff are identified with one or more programs and the information is imported to ODJFS via the quarterly report of FTE positions in CFIS as CS.

(ii) Administrative costs associated with the CS program area are placed in the CS cost pool along with the CS portion of shared costs in accordance with rule 5101:9-1-05 of the Administrative Code.

(iii) Administrative costs are distributed based on percentages derived from the results of the RMS in accordance with rule 5101:9-7-23 of the Administrative Code.

(D) In a CDJFS, all administrative costs in the SS, IM, or WIA cost pools, including ODJFS acknowledged CDJFS function or program expenditures, are made from the public assistance (PA) fund. If a separate fund exists for an ODJFS acknowledged CDJFS function or program, costs identified to the ODJFS acknowledged function or program must be reimbursed to the PA fund from the separate fund. The amount to be reimbursed to the PA fund is dependent upon the RMS and the amount identified on the operating expenditure reports.

(E) Single- or multi-purpose contracts for administrative services may be included in the IM cost pool, SS cost pool, CS cost pool, WIA cost pool or the shared cost pool, if the costs of the contract are not assignable to a particular cost objective in accordance with relative benefits received. Examples of administrative contracts that may be appropriately charged to a shared cost pool include, but are not limited to, building maintenance, human resource services, or any service that indirectly benefits more than one of the major program areas. All single-purpose and multi-purpose contracts with service providers or for case management activities shall be charged directly to the benefiting program funding sources. They may not be included in cost pool expenditures, which are allocated based on time study results.

Effective: 06/11/2012
Promulgated Under: 111.15
Statutory Authority: 5101.02
Rule Amplifies: 329.04 , 5101.02
Prior Effective Dates: 8/24/81, 6/20/82, 7/9/82, 1/17/83, 1/1/86 (Emer), 4/1/86, 1/10/87, 8/6/87, 4/21/88 (Emer), 7/1/88, 7/25/88, 1/7/89, 7/8/89, 12/30/89, 7/28/96, 6/15/98, 1/31/04, 1/23/09