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Summarv: <br />o The attached Resolution and plan documents reflectthe County's internal allocation of administrative costs <br />o This is presented annually to BOCC. Public Health and Sheriff each produce similar annual cost-rate plans. <br />o The Auditor's recommended rate is 13.3% <br />Background: <br />lndirect Cost Allocation refers to the cost of certain county departments to provide services to other County <br />Departments. This enables a quantifiable, reasonable and consistent way to offset the County's costs to <br />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 is <br />commonly a two-year lag for implementation of a given rate. E.g.2O2L data is used to establish a rate for <br />operations in2O23. <br />The rate calculation is forwarded to the County Auditor, who then commonly applies a margin of error to <br />arrive at a final "certified" rate. The Certified rate is forwarded to BOCC for review/approval. <br />Analvsis: <br />Staff Report bv: <br />Brian Carlson <br />Budget and Finance Director <br />Topic: <br />Annual lndirect Cost Allocation Plan <br />2022 <br />16.89% <br />15.00% <br />1.89o/o <br />Meeting <br />BOCC Regular Meeting <br />April4,2O23 <br />a <br />a <br />a <br />a <br />o The current plan and recent history are shown below <br />Effective Year 2019 2020 2021 <br />Actual Rate 13.01o/o 14.44o/o 13.36% <br />Adopted Rate 12.75o/o 12.75o/o 12.75o/o <br />Variance 0.260/o 1.690/o 0.610/0 <br />2023 <br />13.25o/o <br />13.30o/o <br />0.05% <br />r The 2023 "actual" rate has returned to its historic-norm, following a year (2020) of extraordinary expenses in <br />the lT Department. <br />o The recommended "adopted" rate is proposed by the Auditor following his review of the calculated figures. <br />o Additional plan information and calculations are contained in the attach ed 2023 lndirect Cost Attocotion Plon <br />Conclusion / Next Steps: <br />. Approve resolution adopting central services cost allocation plan