§ 641.406 - Administrative cost waiver.

(a) Based upon information submitted by a public or private nonprofit agency or organization with which the Department has or proposes to have an agreement, as set forth under section 502(b) of the OAA, the Department may waive § 641.405(b)(1) and increase the amount available for paying the costs of administration to an amount not to exceed 15 percent of the proposed federal costs of the grant. Each waiver shall be in writing. The Department shall administer this section in accordance with section 502(c)(3) (A) and (B) of the OAA.

(b) The waiver may be provided to grantees that demonstrate and document reasonable and necessary:

(1) Major administrative cost increases;

(2) Operational requirements imposed by the Department;

(3) Increased costs associated with unsubsidized placement;

(4) Increased costs of providing specialized services to minority groups; and

(5) The minimum amount necessary to administer the grant relative to the available funds.