Section 7068 - Administrative Cost LimitationGrantees may expend up to seven and a half percent (7 1/2 %) of the grant amount for administrative costs, provided that such amounts are justified for the type and complexity of the program, and that there are records to document these charges.
Activity delivery costs directly related to a specific activity are not part of the general administrative costs. For example, the cost of a housing rehabilitation specialist is a rehabilitation cost and the legal costs relating to property acquisition are acquisition costs.
Administrative costs may include, but are not limited to, the following categories:
(a) General administrative activities. Such costs for administration include: (1) Salaries, wages, and related costs of the Grantee's staff engaged in general management, general legal services, accounting, and auditing.(2) Travel costs incurred in carrying out the general management of the program.(3) Administrative services performed under third-party contracts including contracts for such services as general legal services, accounting services, and audit services; and(4) Other costs for goods and services related to the general management of the program including rental and maintenance of office space, insurance, utilities, office supplies, and rental or purchase of office equipment.(b) Information and resources provided to persons in the targeted income group, and to citizen organizations participating in the planning, implementation, or assessment of the Grantee's program.(c) Costs incurred for environmental studies, including historic preservation clearances, and specific environmental assessments and clearances related to the CDBG Program.(d) Fair housing activities to facilitate compliance with the requirements of Section 7084.(e) Community development planning activities. If a cost cannot be associated with one of the above listed groups and cannot be associated with direct program costs, the Department shall upon the grantee's request make a determination of whether it is an administrative cost, a program cost, or an ineligible cost.
Cal. Code Regs. Tit. 25, § 7068
1. Amendment filed 1-19-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 3).
2. Amendment of first paragraph and NOTE filed 7-31-96; operative 7-31-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 31). Note: Authority cited: Sections 50406(h) and 50406(n), Health and Safety Code. Reference: 24 CFR 570.489; and Section 50833(c), Health and Safety Code.
1. Amendment filed 1-19-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 3).
2. Amendment of first paragraph and Notefiled 7-31-96; operative 7-31-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 31).