RES 2023-049 - Laserfiche WebLink

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Kittitas County Central Services Simplified lndirect Cost Allocation Plan Effective January 1, 2023 SUMMARY The following CentralServices lndirect Cost Allocation Plan ("Plan") memorializes a cost rate for the provision of indirecf seryices, i.e. services provided by certain County Departments to ofherCounty departments. The PIan is compiled pursuant to Federal regulations, is revised and formally adopted annually, and establishes a reasonable and consistent basis to account for internal-service costs. The rate is established and certified by the County Auditor, and formally adopted via Resolution by the County Commissioners. The primary application of the indirect cost rate is for grants-accounting and reporting, though it can also be used to establish costs for contracted county services, or for internal budgeting and accounting. The cosf rafe reflects the countywide indirect services costs as a percentage of direct seruice (i.e. services provided to County citizens) personnel costs. The rate is calculated based on 2020 audited figures, and is adjusted to reflect allowable and excluded costs and an error-margin. The 2022indirecl cost rate is calculated according to the federal Office of Management and Budget simplified method as follows: Central Service Department Costs Other lndirect Costs Total lndirect Service Costs Total Direct-Cost Personnel lndirect Cost Rate Auditor-Recommended Rate 2,351,886 711,104 3,062,990 22,340,162 13.7o/o 13.70/o This plan distinguishes lndirect Seruice departments (those that primarily provide services to other County departments) from Direct Seruice departments (those that primarily provide services to County citizens). The accounting, information technology, communications, and human resources departments are the identified indirect service departments, and are the primary providers of central services. Their operations are 90To dedicated to internal customers, and their central services costs comprise 80% of countywide central services costs. There are four other departments (Auditor/Administration, Courhouse, non-Depaftmental, Treasurer)that provide indirect services, though not as their primary function. DEFINITIONS Additional Costs - Additional expenses not accounted for at the department level, including depreciation. All Other Direct Costs - the amount remaining from total costs less additional expenses, unallowable costs, indirect costs, and direct salaries & wages. Capitalized Assets - Purchases of Asset that has a value $5,000 or above and has a life longer than one year. These assets are depreciated. The Capitalized Asset is removed as an unallowable cost.