Interagency Agreement HCA and KCPHD for CPWI

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(b) It is not allocable to or included as a cost of any other contract, grant, agreement or program in either the present or any prior period, or used as cost-sharing or matching for another contract or grant, except when the contract specifically authorizes such duplicate allocation. (c) It is accorded consistent treatment with costs of a similar nature. (2) Contract -Specific Direct Costs: If a cost is allocable to the contract pursuant to subsection (1)(a)(i) of this section, the entire amount may be charged to thecontract. (3) Shared Direct Costs: If a cost is allocable to the contract pursuant to subsection (1)(a)(ii) of this section, the charge shall be considered to be in reasonable proportion to the benefits received if the charge is based on time distribution records, random moment time samples, equivalent work units, or space utilization. Other equitable methods may be used with the prior approval of the Department. Allocation of charges based on revenue distribution is not an acceptable method. (4) Indirect Costs: If a cost is allocable to the contract pursuant to subsection (1)(a)(iii) of this section, the charge shall be considered to be in proportion to benefits received if it is based on the total distribution of costs allocated pursuant to subsections (2) and (3) of this section, or if it is based on staff time directly spent in contract and non -contract activities. Other equitable methods may be used with the prior, written approval of the Department. (5) Contractors and cost -related subcontractors shall maintain a current cost allocation plan describing how costs are allocated. (6) Department approvals required in subsections (3) and (4) of this section shall be obtained by submitting a cost allocation plan to the contract manager. The cost allocation plan shall identify the period of time covered by the plan, the cost items to be allocated, the allocation method, the program areas to which costs are allocated, and the resulting allocations using budgeted costs. Copies of indirect cost allocation plans submitted for federal grant purposes may be used to apply for Department approval under subsection (4) of this section. ALLOWABLE COSTS A cost is allowable if: (1) It is authorized or not prohibited by federal, state, or local laws and regulations. (2) It conforms to any limitations or exclusions set forth in the contract terms and approved budget, or in applicable state or federal law or regulation. (3) It is approved in advance and in writing by the Department, if it is a cost requiring approval. (4) It is not an unallowable cost. (5) It is consistent with policies, regulations, directives, and procedures of the contractor. (6) It is accorded consistent treatment through application of generally accepted accounting principles. (7) It is adequately documented in source records such as payroll registers and invoices. (8) It is the net of all applicable credits, such as purchase discounts, rebates, and allowances. Washington State Page 81 HCA Contract No. K3924 Health Care Authority