Is the provision of training for hired welfare recipients an allowable cost under Federal assistance programs?
Answer — Yes. The cost of training provided for employee development is allowable under OMB’s cost principles circulars. 2. Question — Are supportive services, such as transportation and day care services, for hired welfare recipients allowable costs under Federal assistance programs? Answer — Yes, to the extent that an organization’s internal and established policy permits charging of such costs in a consistent manner. These costs are usually classified as fringe benefit costs and, like salaries and wages, are distributed to all of the organization’s activities. In any case, fringe benefits in the form of transit benefits are an allowable cost under Federal grants. Section 132 of the Internal Revenue Code of 1986 allows up to $65 per month to be provided to employees tax free in the form of a “transit pass,” or cash if a “transit pass” is not readily available, for distribution to employees. This benefit cannot be used in lieu of compensation, but must be paid in addition to any co
