§ 171.206. Administrative costs.
(a) Administrative costs are those costs that have been incurred for the operation of the executive and administrative offices of the organization and do not relate solely to any major function of the organization. This administrative expense category also includes its allocable share of fringe benefit costs, operation and maintenance expense, depreciation and use allowances and interest costs.
(b) Costs or expenses related to the following functions are considered as administrative and are subject to the 10% administrative cap except when and to the extent that the costs or expenditures are incurred as a result of providing educational services to children who are residents of this Commonwealth and who have been approved by the Department through the PDE-4010 process. To the extent that the following costs are for educational services, they are not subject to the administrative cap and are reported in the schedule of operating expenses:
(1) Activities of the board of directors.
(2) Executive management.
(3) Staff relations and labor negotiations.
(4) Activities or programs operated to improve or sustain relations between the community and the school.
(5) Activities concerned with the fiscal operations and purchasing activities of the school.
(6) Printing, publishing and duplicating administrative publications such as annual reports, school directories and manuals.
(7) Conducting and managing programs of planning, research development and evaluation for the school.
(8) Activities concerned with writing, editing and other preparation necessary to disseminate educational and administrative information to students, staff, managers and the public through direct mailing, the various news media or personal contact.
(9) Human resources activities, including recruiting, placement and staff transfers.
(10) Activities concerned with preparing data for storage or storing and retrieving data for management reporting.
(11) Activities concerned with acquiring, conducting and managing programs or planning, administration, implementation, coordination, reporting or evaluation of programs and projects that are State or Federally funded.
(12) Activities designed to assist executive management with administrative functions so that they might accomplish the duties quickly and efficiently.
Cross References This section cited in 22 Pa. Code § 171.205 (relating to exceptions to Generally Accepted Accounting Principles).
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