Head Start/Early Head Start Administrative Cost Limitations

DFSS limits the amount of funds that may be charged as development and administrative costs to 10 percent of the total approved costs of HS/EHS programs.

Total approved costs in a HS/EHS program consist of the federal share, the approved non-federal match, plus any additional approved non-federal match above the statutory minimum. Total approved costs exclude costs paid by other federal agencies, e.g., USDA CACFP reimbursements are not included in the total costs of the program.

The CBO must have a system in place, including adequate procedures, to ensure that the 10 percent administrative cost limitation requirement is met to avoid non-compliance.  

This limitation applies to all HS/EHS/EHS- CCP and Ready to Learn contracts


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