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Home My WebLink About2016-032-resolutionKITTITAS COUNTY BOARD OF COUNTY COMMISSIONERS RESOLUTION NO. 2016-081- A Resolution adopting the Kittitas County Public Health Department Simplified Indirect Cost Allocation Plan For Year Ended December 31,2014 WHEREAS, Kittitas County receives Federal Grant Dollars, and WHEREAS, according to the United States Office of Management & Budget, 2 CFR Part 200, Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), Kittitas County Health Department needs to adopt a Simplified Indirect Cost Allocation Plan, and; WHEREAS, the County Auditor has reviewed the Simplified Indirect Cost Allocation Plan and determined the Public Health Department's Indirect Cost Rate to be 30.49%, based on the distribution base of direct salaries & wages of each division/program, and; WHEREAS, the County Auditor has approved the Indirect Cost Rate of 29.00%; a slight reduction from the actual calculation to allow for a margin of error, and WHEREAS, the attached documentation shows the calculation of the Indirect Cost Plan for the Kittitas County Public Health Department as per the requirements for 2 CFR Part 200, Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). NOW, THEREFORE BE IT RESOLVED that the Board of County Commissioners adopts the Indirect Cost Rate for Kittitas County Public Health Department at 29.00%, based on the distribution base of direct salaries & wages, for federal grant reimbursement as certified by the County Auditor, effective January 1,2016. ADOPTED this 1 st day of March, 2016 BOARD OF COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON CERTIFICATE OF COST ALLOCATION PLAN This is to certify that I have reviewed the cost allocation plan submitted herewith and to the best of my knowledge and belief: (1) All costs included in this proposal for the period ended December 31,2014 to establish cost allocations or billings starting January 1,2016 are allowable in accordance with the requirements of the Federal award(s) to which they apply and the provisions ofthis Part 2 CFR Part 200, Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards. Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan. (2) All costs included in this proposal are properly allocable to Federal awards on the basis of a beneficial or causal relationship between the expenses incurred and the agreements to which they are allocated in accordance with applicable requirements. Further, the same costs that have been treated as indirect costs have not been claimed as direct costs. Similar types of costs have been accounted for consistently and the Federal government will be notified of any accounting changes that would affect the predetermined rate. I declare that the foregoing is true and correct. Governmental Unit: Kittitas County -Public Health Department Name of Official: Jerald V. Pettit Title: Kittitas County Auditor Date of Execution: Januarv 1, 2016 The 2016 Indirect Cost Rate is approved at 29.0% and the plan is based upon the 2014 actual data and completed review 2-1-2016. NARRATIVE Kittitas County Public Health Department Simplified Indirect Cost Allocation Plan For the Year Ended December 31, 2014 In order for the Kittitas County Public Health Department (KCPHD) to comply with federal regulations in the Uniform Grant Guidance, a simplified Indirect Cost Allocation Plan is adopted to be able to bill indirect costs to grants. KCPHD's financial data from 2014 is used to formulate the 2016 Indirect Cost Allocation Plan. The distribution base on which the indirect rate will be allocated is the direct salaries charged to department's programs. The department's costs are divided into two categories: administration costs and direct program costs. Within the category of administration costs, only expenses incurred for common or joint purposes and in support of all programs are considered indirect costs. The costs coded to individual programs are considered direct costs. DEFINITIONS • All Other Direct Costs -the amount remaining from total costs less unallowable costs, indirect costs, and direct salaries. • Direct Costs -costs that can be identified specifically with a particular final cost objective such as a particular award, project, service or other direct activity of an organization. • Direct Cost Base -the 2014 fiscal year salaries for each program within the public health department. • Exclusions -costs that are passed through or sub-granted to others are considered to be excludable costs. Some salaries that were charged to administration are not included in the indirect costs. Also, the portion ofthe department's supplies and services and charges expenses that were determined to not be directly associated with administration duties were excluded. • Indirect Cost Allocation Plan -the documentation identifying, accumulating, and developing rates based on the allowable costs of the public health administrative division. These costs may be allocated to the individual programs and billed to the program grants. • Indirect Cost Rate - a device for determining in a reasonable manner the proportion of indirect costs each program should bear. It is the ratio of the indirect costs to a direct cost base. • Indirect Costs -those costs incurred for a common objective that benefits more than one grant program or project. Such costs are not readily assignable to the cost objective specifically benefitted. • Uniform Grant Guidance -United States Office of Management & Budget document establishing principles and standards for determining costs for Federal awards carried out through grants, cost reimbursement contracts, and other agreements with governmental units. • Total Costs -the 2014 fiscal year financial data. • Unallowable Costs -certain costs specifically unallowable under the general and special award conditions or agency instructions. These costs are defined by the Unifonn Grant Guidance. INDIRECT FUNCTIONS At KCPHD, the indirect functions are those administrative tasks completed and the costs incurred to support all divisions of the department. Administration division costs for the fiscal year 2014 totaled $363,891.12. Some of the costs included in this total are: the salaries for administrative staff time; the purchase of office supplies, operating supplies, minor office equipment; fees for professional services, telephone service, postage, travel, advertising, and other such expenses that are necessary to support the multiple programs within the department. Excludable costs that are a part of the Administrative division's totals include salaries and benefits that were charged to the division but are not included in the indirect rate calculation because they are not positions that were detennined to be consistently engaged in full-time work benefiting all programs. This exclusion includes 3 percent of the Public Health Administrator and Fiscal Analyst's time. This percentage was chosen to be used based on the assumption that both of these positions would spend one hour per week during the fiscal year on Developmental Disabilities program work; these personnel expenses will be paid directly from the Developmental Disabilities fund. Costs were also excluded from the calculation based on the assumption that only 16.85 percent of the total costs charged to the division for supplies, and services and charges would be used by the positions supported by the indirect rate. This percentage was found by dividing the total number of budgeted FTE for 2014 by the number of FTE supported by the indirect rate. Excludable costs included in the Administrative division's totals included: Salaries Benefits Supplies Services and Charges Total Excludable Costs $17,642.60 $5,714.53 $7,944.17 $30,441.84 $61,743.14 Unallowable costs included in the Administrative division's total include capital lease expenditures and central services billings from the county. Unallowable costs included in the Administrative division's totals included: Capital Leases Central Services Billings Total Unallowable Costs $3127.08 $93,865.24 $96,992.32 A summary ofthe department's indirect costs are as follows: Total Administrative Division Costs Less: Total Excludable Costs Less: Total Unallowable Costs Total Indirect Costs DIVISIONS WITH DIRECT EXPENSES $363,891.12 ($61,743.14) ($96,992.32) $205,155.66 In 2014, KCPHD had 29 active programs with total expenditures of$1,378,246.90. Of that amount, $14,100.00 was related to excludable costs, which were passed through to Community Health of Central Washington for their professional services in the Children and Youth with Special Health Care Needs program. $31,916.38 was related to an unallowable cost because it was used for a capital vehicle replacement. Direct costs included $672,790.72 related to salaries. The final $659,439.80 was considered to be allowable direct costs. These allowable costs included: • Operating supplies that were necessary to meet the deliverables of the contracts; • Professional services as prescribed by OMB Uniform Grant Guidance, page 110, §200.459. These services were provided by individuals that possess skills not available within the department and the services were necessary to carry out the scope of the contract; • Food that was purchased for a meeting or conference where the primary purpose is the dissemination of technical information (OMB Uniform Grant Guidance, §200.432); • Advertising communicating specific activities or accomplishments as part of the outreach effort for grant deliverables (OMB Uniform Grant Guidance, §200.421); • Equipment purchases that did not meet the county's threshold of a $5,000 minimum to be considered capital equipment. RATE RECOMMENDATION In order to account for a margin of error in the calculation of the department's indirect cost rate, it is recommended by the department's Fiscal Analyst to adopt a rate of29.00%. This recommendation would not change the indirect rate for the 2016 fiscal year. Kittitas County Publl, Health Department Indirel:t Cost Allocation Plan Based on 2014 Finandld Data Dire,t Costs Total Costs Exclusions Unallowable Other Direct Costs (21 131 Salaries Indirect Costs Direct Services/Programs Quality Improvement $10,467.56 $5,859.16 $4,608.40 Community Health Improvement $3,936.08 $2,223 .71 $1,712.37 Accreditation $17,175.36 $8,021.88 $9,153.48 Assessment $20,588.22 $11,456.37 $9,131.85 Public Information Officer $7,323.02 $3,854.90 $3,468.12 Maternal Child Health Block Grant $42,850.91 14,100.00 $15,750.38 $13 ,000.53 Oral Health $7,47639 $3,936.31 $3,540.08 dinic Services (Adult, Oversees, Child r en) $37,566.74 $15,832.60 $21,734.14 In Person Assister (Health Benefit Exchange) $13,477.74 $7,513.38 $5,964.36 Immunizations $26,584.00 $11.105.40 $15,478.60 Tuberculosis $9,775.19 $5,308.85 $4,466.34 HIV!AIDS $20.389.56 $10,506.50 $9.883.06 Communicable Disease $65,856.38 $37,515.96 $28.340.42 Chronic Disease $103,568.68 $55,261.66 $48.307.02 Public Information Officer· Emergency $149.56 $82.57 $66.99 Bioterrorism $68,733.71 $30,603.13 $38.130.58 Marijuana Prevention $59.08 $0.00 $59.08 Medicaid Administrative Match $1,259.45 $721.16 $538.29 Commun ity Health Administration $224,637.57 $112.289.38 $112,348.19 Water $109,395.40 $60,593.45 $48.801.95 Solid Waste $105,319.66 $55,211.55 $50,108.11 On·Site Sewage $93,554.09 $31,916.38 $33,759.49 $27.878.22 Zoonotics $3,357.44 $1.422.82 $1.934.62 Food Safety $87,201.74 $47,959.99 $39.241.75 Living Environment $40,137.12 $21,145 .53 $18,991.59 Food Education/Food Worker Cards $213.97 $114.97 $99.00 Environmental Health Administration $239,477.09 $108,046.74 $131,430.35 Vital Records $12,715.19 $6,692.88 $6,022.31 St!JUrn1 Assavll Nurse Examinations $5,000.00 SO.OO $5,000,00 Subtotal $1,378,246.90 $14,100.00 $31,916.38 $672,790.72 $659,439.80 $0.00 Indirect Costs of Division Admin istration Salaries $161,566.75 $17,642.60 $143.924.15 Administration Benefits $55.603.45 $5,714.53 $49,888.92 Supplies $10,296.84 $7,944.17 $2,352.67 Services & Charges $39,431.76 $30,441.84 $8,989.92 Capita l Outlay $3,127.08 $3 ,127.08 $0.00 Central Services ofthe Enlily (1) $93,865.24 $93,865.24 SO.OO Subtotal $363,891.12 $61,743.14 $96,992.32 $0.00 $0.00 $205,155.66 TOTAL $1,742,138.02 $75,843.14 $128,908.70 $672,790.72 $659,439.80 $205,155.66 1. This represents the amount of intemal services allocated to the department via the entity-wide central service cost allocation plan. 2. This column represents amounts that are passed through to other entities and amounts that are more directly related to program areas and are not included in the indirect rate 3. This column represents costs not allowed by Uniform Grant Guidance (capital expenditures, legal expenditures and civic organization membership) Public Health Department Indirect Cost Rate : Indirect Costs Direct Salaries $205,155.66 $672,790.72 JDA9% Public Health Department Admin m Rate: 2014 Budgeted 17.80 16..85% Admin FTE 3.00