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Development & Administrative Costs
 

Allowable costs for developing and administering a Head Start program may not exceed 15 percent of the total approved costs of the program, unless the responsible HHS official grants a waiver approving a higher percentage for a specific period of time not to exceed 12 months. This resource provides examples that program directors and financial managers can use in preparing annual budgets.


Development & Administrative Costs

Development and administrative costs (D&A) are costs that do not directly relate to the provisions of program component services, including services to children with disabilities.

Examples

Personnel:

  • Executive Director
  • Deputy Directors
  • Fiscal Manager & Staff
  • Bookkeeper
  • HS/EHS Director (no other responsibilities)
  • Fringe Benefits for Administrative Personnel
  • Administrative Assistant
  • Administrative Secretary
  • Human Resource Manager & Staff
  • Other Managers (not service component specific)

Non-Personnel

  • Legal services
  • Advertising
  • Accounting
  • Single audit
  • Indirect costs
  • Travel costs for administrative personnel

Dual Benefit Costs

  • Head Start Director (also has specific component responsibility)
  • Secretary
  • Office equipment
  • Office supplies
  • Rent
  • Other supplies
  • Mortgage
  • Utilities, telephone
  • Building insurance
  • Postage
  • Printing

Developmental Costs

  • Grant writing
  • Planning for expansion
  • Locating facilities
  • Long-range planning committees
  • Architectural designs

Requirements

  • Costs do not exceed 15 percent of total project costs. Total project costs include the Federal and non-Federal share
  • Costs of organization-wide management are charged as D&A costs
  • Delivery of program services are categorized and charged as program costs
  • Dual benefit costs are identified and allocated
  • D&A costs used for the non-Federal share are included in the 15% limitation
  • The 15% limitation is enforced at the grantee level
  • Delegate agency(s)' costs are part of the 15% limitation
  • Compliance with the 15% requirement is based on final expenditures
  • For HS/EHS grantees, the 15% limitation is calculated on the total project costs (Fed. & non-Fed.) for both HS/EHS

Source:
     45 CFR 1301.2 and 1301.32
     Fiscal Assistant
Development & Administrative Costs. Sattler, James. 2004 Head Start and Early Head Start Directors' Institute. Crystal City, VA. HHS/ACF/ACYF/HSB. July 11-15, 2004. English.