[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR631.13]

[Page 259-260]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 631--PROGRAMS UNDER TITLE III OF THE JOB TRAINING PARTNERSHIP ACT--Table of Contents
 
 Subpart B--Additional Title III Administrative Standards and Procedures
 
Sec. 631.13  Classification of costs at State and substate levels.

    (a)(1) Allowable costs under Title III shall be planned, controlled, 
and charged by either the State or the substate grantee against the 
following cost categories: rapid response services, basic readjustment 
services, retraining services, needs-related payments and supportive 
services, and administration. Costs shall be reported to the Secretary 
of Labor in accordance with the reporting requirements established 
pursuant to Sec. 631.15 of this part.
    (2) All costs shall be allocable to a particular cost category to 
the extent that benefits are received by such category; and no costs 
shall be chargeable to a cost category except to the extent that 
benefits are received by such category.

[[Page 260]]

    (b) Rapid response services shall include the cost of rapid response 
activities identified at section 314(b) of the Act.
    (1) Staff salary and benefit costs are chargeable to the rapid 
response services cost category only for that portion of staff time 
actually spent on rapid response activities.
    (2) All other costs are chargeable to the rapid response services 
cost category only to the extent that they are for rapid response 
purposes.
    (c) Basic readjustment services shall include the cost of basic 
readjustment services identified at section 314(c) of the Act, except 
that the cost of supportive services under section 314(c)(15) of the Act 
shall be charged to the needs-related payments and supportive services 
cost category, as provided in paragraph (e) of this section.
    (d) Retraining services shall include the cost of retraining 
services identified at section 314(d) of the Act.
    (e) Needs-related payments and supportive services shall include the 
cost of needs-related payments identified in section 314(e) of the Act, 
and supportive services identified in section 4(24) of the Act and 
provided for in section 314(c)(15) of the Act.
    (f)(1) Administration shall include the costs incurred by recipients 
and subrecipients in the administration of programs under Title III of 
the Act, and shall be that portion of necessary and allowable costs 
which is not directly related to the provision of services and otherwise 
allocable to the cost categories in paragraphs (b) through (e) of this 
section. The description of administrative costs in subpart D of part 
627 of this chapter shall be used by States and substate grantees as 
guidance in charging administration costs to Title III programs.
    (2) Administration does not include the costs of activities under 
section 314(b) of the Act and which are provided for in paragraph (b) of 
this section.
    (3) Administration shall include Title III funds used for 
coordination of worker adjustment programs with the Federal-State 
unemployment compensation system and with Chapter 2 of Title II of the 
Trade Act of 1974 (19 U.S.C. 2271, et seq.) and part 617 of this chapter 
(sections 311(b)(10) and 314(f)).