b. Contract approval - Laserfiche WebLink

Origination Date 6/15/03 diverse characteristics and accounting practices of governmental units, it is not possible to specify the types of cost which may be classified as indirect cost in all situations. However, typical examples of indirect cost may include State/local-wide central service costs, general administration of the grantee department or agency, accounting and personnel services, depreciation or use allowances on buildings and equipment, and the costs of operating and maintaining facilities. OMS Circular A-87 Attachments C., D., & E. provide the requirements for development and submission of cost allocation plans and indirect cost rate proposals. OMS Circular A-87 Attachment C. State/Local-Wide Central Service Cost Allocation Plans provides a process whereby central service costs, such as motor pools, computer centers, accounting, etc., can be identified and assigned to benefited activities on a reasonable and consistent basis. Each State must submit a plan to the Federal Department of Health and Human Services for each year in which it claims central services costs under Federal awards. Local governments claiming central service cost must develop a plan in accordance with the requirements of A-87 and maintain the plan and related supporting documentation for audit. OMS Circular A-87 Attachment D. Public Assistance Cost Allocation Plans. Federally-financed programs administered by "State public assistance agencies" are funded predominately by the Department of Health and Human Services (HHS). In support of its stewardship requirements, HHS has published requirements for the development, documentation, submission, negotiation, and approval of public assistance cost allocation plans in Subpart E of 45 CFR Part 95. OMS Circular A-87 Attachment E. State and Local Indirect Cost Rate Proposals. Please note Attachment E does not apply to State public assistance agencies. These agencies should refer instead to Attachment D. Indirect costs are normally charged to Federal awards by the use of an indirect rate. A separate indirect cost rate(s) is usually necessary for each department or agency of the governmental unit claiming indirect costs under Federal awards. Guidelines and illustrations of indirect cost proposals are provided in a brochure by the Department of Health and Human Services entitled "A Guide for State and Local Government Agencies: Cost Principles and Procedur~s for Establishing Cost Allocation Plans and Indirect Cost Rates for Grants and Contracts with the Federal Government." A copy of this brochure may be obtained from the Superintendent of Documents, US Government Printing Office. Attachment E provides for various methods of allocating indirect costs. These Include: The Simplified Allocation Method - Used when an organization's major functions benefit from its indirect costs to approximately the same degree. The Multiple Allocation Sase Method - Used when an organization's indirect costs benefit its major functions in varying degrees. 5