NSP FAQ
Q

What kinds of costs and/or expenses are eligible to be paid from the 10% administration allowance?

Date Published: October 2012

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A

The use of NSP funds to pay program administrative costs is authorized under 24 CFR 570.206, Program Administrative Costs, which permits NSP funds to be used for "reasonable administrative costs and carrying charges related to the planning and execution of community development activities assisted in whole or in part [with NSP funds].” These administrative costs satisfy the statutory requirement for meeting a national objective because the costs are incurred in support of individual eligible program activities that meet a national objective. Examples of program administrative costs include:

  • Salaries of executive officers
  • Office space for program staff employed in carrying out the NSP Program
  • Staff time spent developing policies and procedures for managing NSP activities
  • Administrative services performed under third party contracts, such as general legal and audit services
  • Costs associated with NSP activities that are not appropriately documented as activity delivery costs
  • OMB Circular A-87 (for governmental entities) and Circular A-122 (for nonprofit organizations) provide the principles for determining program administrative costs.

Staff costs for NSP related project work may be charged to the 10% administration allowance as well. NSP administrative costs do not include general agency administrative costs unrelated to the administration of the NSP Program.


Tags: NSP Program Requirements - Eligible Costs

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FAQ ID:

626