1. (a) Funds available for Subrecipient administrative activities will be calculated by the Department as a percentage of direct services Expenditures. Administrative costs shall not exceed the maximum percentage of total direct services Expenditures, as indicated in the Contract. All other administrative costs, exclusive of administrative costs for program services, must be paid with nonfederal funds. Allowable administrative costs for administrative activities includes costs for general administration and coordination of CEAP, and all indirect (or overhead) costs, and activities as described in paragraphs (1) - (7) of this subsection:

   1. (1) Salaries;
   2. (2) Fringe benefits;
   3. (3) Non-training travel;
   4. (4) Equipment;
   5. (5) Supplies;
   6. (6) Audit (limited to percentage of the contract expenditures, excluding training/travel costs as indicated in the Contract); and
   7. (7) Office space (limited to percentage of the contract expenditures, excluding training/travel costs as indicated in the Contract).

2. (b) Program Services costs shall not exceed the maximum percentage of total direct services Expenditures, as indicated in the Contract. Program Services costs are allowable when associated with providing customer direct services. Program services costs may include outreach activities and expenditures on the information technology and computerization needed for tracking or monitoring required by CEAP, and activities as described in paragraphs (1) - (9) of this subsection:

   1. (1) Direct administrative cost associated with providing the customer direct service;
   2. (2) Salaries and fringe benefits cost for staff providing program services;
   3. (3) Supplies;
   4. (4) Equipment;
   5. (5) Travel;
   6. (6) Postage;
   7. (7) Utilities;
   8. (8) Rental of office space; and
   9. (9) Staff time to provide energy conservation education, needs assessments, and referrals.

Source Note:The provisions of this §6.308 adopted to be effective January 1, 2025, 49 TexReg 10509.