The Program Income Guidelines in WPN 13-3 cover it for DOE. Income Exclusions C. 17 LIHEAP says, "They just don't count it as income." There is no real place to reflect that in the Monthly Income Calculator.
The AGI allows for things like the standard deductions to be taken out.
If you took the Gross pay off a client's pay stubs for 1 year and corresponding AGI from that year's tax return they would be two different numbers.
Depending on what the office staff is doing determines if the labor is an allowable charge.
Strictly administrative functions like processing applications, qualifying clients, etc.. would not be allowable.
If they were doing support functions like purchasing materials, warehouse/inventory work, direct supervision of field staff, or similar functions that directly relate to the agency preforming the Crisis work it would be allowable.