Indirect costs may be classified as administrative costs or program costs. Indirect costs are usually, but not always, administrative costs. However, indirect costs classified as program costs must be fully explained in the application.

Yes, a disallowance can be taken against the grantee agency for the amount that administrative costs exceed the 15% limitation. In addition, a disallowance may be taken on administrative costs that are considered excessive even if the administrative costs limitation is not exceeded.

Yes, the grantee agency may request a waiver of the 15% administrative cost limitation for a period not to exceed 12 months. The approval must be in writing and signed either by the Grants Officer, the ACF Regional Administrator or the ACF Assistant Secretary.

This would be considered a dual benefit cost and should be appropriately allocated (usually a time study) between the administration and program.

This would depend on the use of the facility. If the facility contained space for both administrative functions and program component functions, then it would be classified as a dual benefit cost. The grantee agency must then allocate costs between administrative and program.

The grantee agency's actual percentage can be obtained by dividing the total administrative costs incurred to date or at the end of the budget period by the total approved costs (Federal share plus non-Federal share) incurred to date or at the end of the budget period.

Administrative costs are organization-wide management function costs and include such categories as planning, accounting, personnel, and related administrative costs as well as expenses related to administrative staff functions such as fringe benefits, travel and training.

Yes. Program costs are those costs directly related to the provision of program component services, training, staff and similar functions as well as expenses related to program staff functions such as fringe benefits, travel and training.