Admin. Fee Information

The funding agency is responsible for monitoring fiscal compliance.  As part of that responsibility, the reports should be reviewed to ensure that the funds were properly accounted for and reported; that the nongovernmental entities receiving, using, or expending $500,000 or more in state funds did receive an audit as required; that findings reported in the audit reports that effect their programs are resolved; and, if a single audit is required, that an audit in accordance with OMB Circular A-133 was obtained.  The funding agency should perform these procedures, consider whether subgrantee audits necessitate adjustments to its records and resolve the reported findings within six months after the audit report is received by the funding agency.  Additional guidance for the review of subgrantee audits is provided in OMB Circular A-133 under section “Federal Agencies and Pass-Through Entities”.

The required reports should be treated as accounting records and subject to the record retention requirements of the funding agency.  At a minimum, the reports should be maintained on file for three years from the date received.

The statute provides that a grantee organization is only required to submit an audit if it receives, uses, or expends greater than $500,000 in state funds.  If you receive cumulative state funding at a threshold that requires an audit, it is feasible that state funds should participate in the cost of the audit in a proportional amount.  However, if your organization receives less than $500,000 in state funds, no state funds should be used for the cost of an audit.  In this case, the reporting required at the state level is less than an audit; therefore, the cost of the additional reporting should not be passed on to the State.

The NC Council for Women & Youth Involvement is defining administrative costs based upon our interpretation of A122 and from IRS instructions to the 990.

Administrative costs associated with CFWYI funds shall not exceed 20% of the grant appropriation.

Grant appropriation=domestic violence, sexual assault, and marriage licensee fees

Administrative or M&G costs are expenses allocated for the overall function and management of the agency, rather than for the direct conduct of program services or fundraising activities. Overall management usually includes the salaries and expenses of the chief officer of the organization and that officer’s staff, except the time they spend supervising or performing program services or fundraising activities.

Examples of Administrative or M&G costs include (but are not limited to):

• Board of Directors, Committee and staff meetings (unless held in connection with specific program or fundraising activities) 
• Legal/Accounting/Financial Services
• Office management and general office supplies
• Publication and distribution of an annual report
• Salary, FICA, fringe benefit expense for non-direct service staff time (i.e.: grant writing/compliance reporting, board meeting preparation, monthly financial reconciliations, etc.)
• percentage of rent and utilities not associated with program delivery

When assessing line items charged to the grant, ask is this expense associated with carrying out direct services of the program?

The total of domestic violence grant=$45,000

20% of $45,000= $9,000.

$9,000 is the total amount allowed to cover “administrative” costs.

**PLEASE NOTE: Grantees that receive domestic violence funds automatically qualify to receive an equal quarterly portion of anticipated marriage license fees generated thru the Administrative Office of the Courts. It is an additional funding source for domestic violence programs only.

The total of sexual assault grant=$24,000

20% of $24,000= $4,800.

$4,800 is the total amount allowed to cover “administrative” costs.