Are there any special rules for determining program costs in public sector employment?
A2: No, the same cost principles apply to public sector subsidized employment that apply to other aspects of the TANF program; however, we remind jurisdictions of the importance of adhering to the principles of determining allowable costs expressed in OMB Circular A-87. In particular, they stipulate that costs must be reasonable and that consideration should be given to arm’s length bargaining in setting reasonable costs.
