Cook County
Dept. of Public Health
1010 Lake St. Suite 104, Oak Park, IL 60301-1133
708-492-2000
708-492-2002 TDD
708-492-2900 fax
Stephen A. Martin Jr., Ph.D., M.P.H.
Chief Operating Officer CCDPH
Grantee Information
Administrative Costs
PURPOSE The intent of this Lead-Based Paint Hazard Control Grant (“LBPHCG”) is to allow the Grantee to be reimbursed for the reasonable direct and indirect costs for overall management of the grant. The Grantee is expected to perform the function of overall management of the grant program and, in most circumstances, to serve principally as a conduit to pass funding to contractors, which are to be responsible for performance of the lead-hazard reduction work. The cost of that function, for the purpose of this grant, is defined as the “administrative cost” of the grant, and is limited to the amount designated for administrative costs in the Grantee’s Budget, attached as part of Exhibit A. The balance of the total grant sum is reserved for the contractor/direct performers of the lead-hazard reduction work.
ADMINISTRATIVE COSTS: WHAT THEY ARE NOT For the purpose of the LBPHCG program for Grantees to provide support for the evaluation and reduction of lead-hazards in low-income, private target housing: the term “administrative costs” should not be confused with the terms “general and administrative cost”, “indirect costs”, “overhead”, and “burden rate”. These are accounting terms, usually represented by a government-accepted standard percentage rate. The percentage rate allocates a fair share of an organization’s costs that cannot be attributed to a particular project or department (such as the chief executive’s salary or the costs of the organization’s headquarters building) to all projects and operating departments (such as the Fire Department; the Police Department; the Community Development Department, the Health Department or this program). Such allocated costs are added to those projects’ or departments’ direct costs to determine their total costs to the organization.
Providing local officials and citizens with information about the overall grant program and administering a general education program such as helping the public understand the nature of lead hazards, lead hazard reduction, blood-lead screening, and the health consequences of lead poisoning is not an eligible activity.
ADMINISTRATIVE COSTS: WHAT THEY ARE For the purposes of this LBPHCG program, “Administrative Costs” are the Grantee’s allowable direct costs for the overall management of the grant program plus the allocable indirect costs. The allowable limit of such costs that can be reimbursed is the amount designated for administrative costs in the Grantee’s Budget, attached as part of Exhibit A. Should the Grantee’s actual costs for overall management of the grant program exceed that amount, those excess costs shall be paid for by the Grantee.
ADMINISTRATIVE COSTS: DEFINITION
GENERAL Administrative costs are the allowable, reasonable, and allocable direct and indirect costs related to the overall management of the LBPHCG for lead-hazard reduction activities. Those costs shall be segregated in a separate cost center within the Grantee’s accounting system, and they are eligible costs for reimbursement as part of the grant, subject to the amount designated for administrative costs in the Grantee’s Budget, attached as part of Exhibit A.The Grantee may elect to serve solely as a conduit to contractors, who will in turn perform the direct program activities eligible under the LBPHCG, or the Grantee may elect to perform all or a part of the direct program activities in other parts of its own organization, which shall have their own segregated, cost centers for those direct program activities. The Grantee shall take care not to mix or attribute administrative costs to the direct project cost centers.
SPECIFIC Reasonable costs for the Grantee’s overall grant management, coordination, monitoring, and evaluation are eligible administrative costs. Subject to the amount designated for administrative costs in the Grantee’s Budget, attached as part of Exhibit A, such costs include, but are not limited to, necessary expenditures for the following, goods, activities and services:
1. Salaries, wages, and related costs of the Grantee’s staff, the staff of affiliated agencies, or other staff engaged in the Grantee’s overall grant management activities. In charging costs to this category, the Grantee may either include the entire salary, wages, and related costs allocable to the program for each person whose primary responsibilities (more than 65% of their time) with regard to the grant program involve direct overall grant management assignments, or the pro rata share of the salary, wages, and related costs of each person whose job includes any overall grant management assignments. The Grantee may use only one of these two methods during this program. Overall grant management includes the following types of activities:
a. Preparing Grantee program budgets and schedules, and amendments thereto;
b. Developing systems for the selection and award of funding to contractors;
c. Developing suitable agreements for use with contractors to carry out grant activities;
d. Developing systems for assuring compliance with program requirements;
e. Monitoring contractor activities for progress and compliance with program requirements;
f. Preparing presentations, reports, and other documents related to the program for submission to the Department;
g. Evaluating program results against stated objectives;
h. Coordinating the resolution of overall grant audit and monitoring findings; and
i. Managing or supervising persons whose responsibilities with regard to the program include such assignments as those described in paragraphs (a) through (h).
2. Travel costs incurred for official business in carrying out the overall grant management in the County of Cook, Illinois.
3. Administrative services performed under third party contracts or agreements, for services directly allocable to overall grant management such as overall-grant legal services, overall-grant accounting services and overall-grant audit services.
4. Other costs for goods and services required for, and directly related to, the overall management of the grant program, including such goods and services as telephone, postage, rental of equipment, renter’s insurance for the program management space, utilities, office supplies and rental maintenance (but not purchase) of the office space for the program.
5. The fair and allocable share of the Grantee’s general costs that are not directly attributable to specific projects or operating departments such as: The Mayor’s and City Council’s salaries and related costs; the costs of the City’s General Council’s office, not charged off to particular projects or operating departments; and the costs of the City’s Accounting Department not charged back to specific projects or operating departments. (If Grantee has an established burden rate it should be used; if not Grantee shall be assigned a negotiated provisional burden rate, subject to final audit).
