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Are community-based organizations (CBO) and professional service contracts also included in the .5% administrative cost limitation?

April 26, 2017administrative cbo community-based contracts COST included Organizations professional service

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Are community-based organizations (CBO) and professional service contracts also included in the .5% administrative cost limitation?

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Section 5, subsection (d) (2) of the legislation states, administrative overhead costs shall only be charged by the recipient entity, as defined in paragraph (1). Paragraph 1 states a “recipient agency” or “recipient entity” is that entity that actually incurs the expenditures of the SLESF funds allocated. The BOC interprets the recipient to be the county. The legislation is silent on contract services. A county should provide sufficient oversight to limit overhead costs in any sub-contracts and comply with individual county contracting policies.