Laserfiche WebLink
Kittitas County Auditor - Agenda Staff Report <br />Prepared by: Brian Carlson, Budget and Finance Director <br />Agenda Date: May 3,2O22 <br />Topic: 2O22lndirect Cost Allocation Plan <br />Action Requested: <br />Approve Resolution adopting the 2O22 Central Services lndirect Cost Allocation Plan <br />Summary: <br />Background <br />Pursuant to Federal regulations, and as a recipient of Federal grant awards, the County must annually <br />prepare and adopt an indirect cost allocation plan. <br />This agenda item consists of a Resolution to authorize the plan f or 2022. <br />a <br />a <br />o <br />a <br />a <br />a <br />a <br />a <br />a <br />a <br />lndirect Cost Allocotion refers to the cost of certain county departments to provide services to other <br />County Departments. This enables a quantifiable, reasonable and consistent way to offset the County's <br />costs to administer grants. <br />lndirect Cost Allocation is also applicable to certain County contracts, and for internal accounting and <br />budgeting, e.g. Departments and/or Funds pay one another for the provision of services. <br />A cost allocation plan is required for most Fed grant recipients. A plan's threshold requirements are <br />established by the Federal Office of Management and Budget. <br />The rate calculation is formula-driven, and uses the most-recent audited financial data. Therefore, there <br />is commonly a two-year lag for implementation of a given rate. E.g.2O2O data is used to establish a rate <br />for operation s in 2022. <br />The rate calculation is forwarded to the County Auditor, who then commonly applies a margin of error <br />to arrive at a final "certified" rate. The Certified rate is forwarded to BOCC for review/approval. <br />The current plan and recent history are shown below: <br />Effective Year 20{9 2020 2021 2022 <br />Actual Rate 13.01o/o 14.44o/o 13.360/o 16.89% <br />Adopted Rate 12.75o/o 12.75o/o 12.75o/o 15.00o/oVariance 0.260/o 1.690/o 0.610/o 1.89o/o <br />The 2O22 "actual" rate increase is driven by likely one-time expense increases in 2020, primarily in the lT <br />Department. <br />Additional plan information and calculations are contained in the attached 2022 tndirect Cost Allocation <br />Plon <br />Attachments (2): <br />o Resolution 2022 lndirect Cost Allocotion <br />o 2022 lndirect Cost Allocotion Plon