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29644 Federal Register / Vol . 66 , No . 105 / Thursday , May 31 , 2001 / Notices
<br /> After One- Stop shared costs are periods during the grantee fiscal year . Stop waits to make adjustments , the
<br /> identified , they maybe accumulated by Monthly allocations can be misleading greater the likelihood that adjustments
<br /> line4tem expense categories ( also as to results because all costs do not will be. significant. An adjustment to the
<br /> referred to as natural expense occur evenly on a monthly basis . budget ""Till not necessarily require a
<br /> classifications and object expense Regardless of the methodology used , modification of the MOU unless the
<br /> categories ) . Some examples of line-item allocations could be accomplished terms of the MOU are affected .
<br /> expenses are salaries , occupancy costs , monthly but must be done no less After the budget is prepared , all of the
<br /> I re
<br /> telephone , postage and shipping , frequently than the required financial partners will then agree how each Will
<br /> printing and duplication , and supplies . reporting period , usually quarterly . pay its allocable fair share . One partner
<br /> Shared costs may also. be accumulated Funding or Paying' for a Partner' s may furnish only personnel ; another
<br /> or grouped by service. department such Allocated Shar One- Stop Costs partner may furnish space and
<br /> as data processing and management telecommunications , etc . , or each
<br /> information (MIS ) , printing and Under WIA , the One - Stop partners are partner may use its grant funds to pay
<br /> duplicating , mailing and shipping , required to enter into a written for its allocable portion of shared costs .
<br /> purchasing and procurement , payroll , Memorandum of Understanding (MOU) This agreement about how the allocable
<br /> personnel , and general legal services . with the Local Board , prior to starting shares of One- Stop shared costs are to
<br /> Another method may be accumulating operations . The MOU must include be. funded (paid for) must be included
<br /> costs based on function or activity such provisions that describe : in the MOU that is to. be followed
<br /> as eligibility determination; outreach, 1 . The services to be provided through during the operating period . As with
<br /> intake and orientation; initial the One - Stop delivery system ; cost allocation, the choices that the
<br /> assessment; job search and placement 2 . How the cost of those services and partner programs make about the
<br /> the operating costs of the One- Stop methods of payment for the shared costs
<br /> assistance , and career counseling ; and P Y
<br /> follow u services . Whichever ou in delivery system will be funded (paid should be applied consistently over
<br /> P group mg
<br /> or accumulation method is used , it is time . However , i
<br /> for) ; n some circumstances ,
<br /> the actual incurred costs that are 3 . The methods that will be used to the cost allocation and resource sharing
<br /> accumulated , refer individuals between the One- Stop methodologies , including the
<br /> operator ( s ) and the One - Stop partners methodologies used to determine
<br /> Once the costs have been g
<br /> accumulated , they need to. be allocated for the provision of appropriate services proportionate shares ,. may need to be
<br /> and activities ; and modified if actual experience is either
<br /> to the benefitting cost objectives (for P
<br /> One- Stop allocation, the final cost 4 . The duration of the MOU as well different from what the partners
<br /> as the procedures for amending it Tanned or. demonstrates that the
<br /> objectives. will most often be the. partner duringthe term or period covered b T the P
<br /> programs ) on some basis. that will P 3 methods being used are resulting in
<br /> rovide for an equitable distribution. MOU . inequitable. distributions . As with
<br /> The most commonly used allocation In order for the MOU to describe how budget modifications , it is often best to
<br /> bases include : the costs of services and One- Stop modify the. methodologies as soon as
<br /> 1 . Direct-staff salaries : Percentage of operations will be paid for , the partners possible after. the need is recognized .
<br /> total salary costs of staff assigned to will first need to identify those costs Because. such changes would constitute
<br /> and prepare a budget for the common/ changes in methodologies which are a
<br /> activiti ares es . g g
<br /> 2 . Direct-staff hours : Percentage of shared One- Stop activities . This budget required element of the local MOU , it
<br /> time spent by staff assigned to activities . will not only describe the. shared costs may also be necessary to modify the
<br /> 3 . Modified total direct costs : of the One - Stop system and / orin lodeOn8s op MOU when such a change is made .
<br /> center in total , but will also include For man of the partner programs ,
<br /> Percentage of total direct costs. for Y P P �'
<br /> activities , less distorting items ( e . g . , estimates of how much of the total including the. WIA title I—B program , the
<br /> equipment purchases , flow through shared cost (personnel , space , Federal funds are awarded or passed
<br /> funds , etc . ) telecommunications , etc . ) of the One - through to State and local governmental
<br /> 4 . Total direct costs : Percentage of Stop is allocable to each partner . The entities subject to the cost principles of
<br /> total direct costs for activities . budget development process involves OMB. Circular A-87 . OMB Circular A—
<br /> (Normally inappropriate unless there all of the One - Stop partners and the _ 87 , Attachment A, paragraph C . 3 . c .
<br /> are no distorting items . See item 3 One - Stop operator . The budget states , " Any cost allocable to a
<br /> above . ) document does not need to be included particular Federal award or cost
<br /> 5 . Units of service : Percentage of units in or attached to the MOU. Remember objective under. the principles provided
<br /> of service provided . that a budget is a plan, typically based for in this. Circular may not be charged
<br /> 6 . Usage : Percentage of usage of space , on historical information , that estimates to other Federal awards to overcome
<br /> equipment, or other assets by activities . how the anticipated funding level will fund deficiencies , to avoid restrictions
<br /> Allocations may be made on a single be spent on the expected costs of the imposed by law or terms of the Federal
<br /> basis for all categories of costs or on programs . On a periodic basis , no less awards , or for other reasons . However ,
<br /> multiple bases that vary by category . frequently than quarterly , the actual this prohibition would not preclude
<br /> When reliable , using a single basis for shared costs and the allocation among governmental units from shifting costs
<br /> allocating common costs can be less the partner programs will need to be that are allowable under two or more
<br /> burdensome . Direct staff salaries is often reviewed and compared with the awards in accordance with existing
<br /> appropriate when salaries alone planning levels that were included in program agreements " . Question 2 -16 in
<br /> represent about half of an entity' s total the budget . Corrections or adjustments ASMB C-10 , the implementation guide
<br /> costs and other categories of costs tend to the budget should be made on an for OMB Circular A- 87 , clarifies that the
<br /> to vary according to staff salaries , ongoing basis to reflect actual levels . At intent of this paragraph is to distinguish
<br /> Cumulative cost pool allocations for the that time , the budget document; between cost allocation and funding
<br /> reporting period are often preferable to including the allocable partner shares of allocation . The C- 10 goes onto say ,
<br /> monthly allocations in achieving the One - Stop shared costs , may need to " ( * t The term ` cost shifting ' should
<br /> equitable sharing among grant funded be adjusted to conform to actual not have been used , because cost
<br /> activities because of various grant circumstances . The longer that a One- shifting is unallowable , per se . ) A
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