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HomeMy WebLinkAboutCentral Services Indirect Cost Allocation PlanKITTITAS COUNTY BOARD OF COUNTY COMMISSIONERS RESOLUTION NO. 2017 -\fjl..\ A Resolution adopting Central Services Simplified Indirect Cost Allocation Plan for Year Ended December 31,2015 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 needs to adopt a Central Services Simp lified Jll di rec t ost A ll ocation Plan , and; WHEREAS, the County Auditor has determined the Indirect Cost Rate to be 12.60 %, based on the distribution base of direct salaries & wages of each department/fund, and; WHEREAS , the County Auditor has certified the Indirect Cost Rate of 11.25%; a reduction from the actual calculation to allow for a margin of error, and WHEREAS, the attached documentation shows the calculations of the Indirect Cost Plan for Kittitas County 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 at 11.25%, based on the distribution base of direct salaries & wages, for federal grant reimbursement as certified by the County Auditor, effective January 1, 2017. ADOPTED this 21 st day of March, 2017. ATTEST BOARD OF COUNTY COMMISSIONERS ~' WASHINGTON ~ ~~ Commissioner 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 31,2015 to establish cost allocations or billings starting January 1,2017 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, Unifonn 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 Coun ty -Public H ealth D e partme nt Signanrre: ~ V~ Name of Official: Jerald V. Pettit Title: Kittitas County A u ditor Date of Execution: Janu my 1. 2017 The 2017 Indirect Cost Rate is approved at 29.5% and the plan is based upon the 2015 actual data and completed review 3-1-2017. Department Indirect Functions that Provide Services to the Service Providing Units 0011 Auditor 0017 Information Services 0020 Communications 0038 Human Resource Departments that Provide Direct Services to the Citizens of the County 0010 Assessor 0011 Auditor 0011 Auditor 0011 Auditor 0011 Auditor 0011 Auditor 0011 Auditor 0012 Board Equalization 0013 Fire Marshal/Code Enforcement 0015 County Clerk 0016 Commissioners 0018 Cooperative Extension 0019 Disability Board 0021 Judge -Superior Court 0022 Juvenile 0023 law library See Accompanying Narrative Kittitas County Central Services Simplified Indirect Cost Allocation For the Year Ended December 31,2015 Sub Department Accounting Information Services Postage Machine/Cle Elum Line Human Resources Total Indirect Services Assessor Administration Recording Vehicle Licensing Elections Voter Registration HAVAGrant Board Equalization Fire Marshal/Code Enforcement County Cieri< Commissioners Cooperative Extension Disability Board Judge -Superior Court Juvenile law library a Total Costs 12-31-2015 411,741 868,529 96,395 173,366 1,550,031 a Total Costs 12-31-2015 980,380 122,339 113,140 183,096 121,465 36,479 1,824 6,146 313,654 296,392 442,551 171,824 20,916 743,029 477,287 20,018 b c Additional Costs Excluded Costs ie Depr, Rev (16,049) 33,663 (106,662) 2,876 (84,508) (37,155) 36,539 (244,373) b c Additional Costs Excluded Costs ie Depr, Rev d Unallowable Costs (3,283) (3,283) d Unallowable Costs e Indirect Costs a+b+c+d 395,692 792,247 14,763 136,211 1,338,913 e Indirect Costs 49,874 I Direct All Other SalarieslWages Direct Costs o Direct All Other SalarieslWages Direct Costs a+b-f 656,525 323,855 80,206 42,132 77,536 35,604 121,208 61,888 35,398 86,067 17,482 18,997 1,824 4,124 2,022 116,285 197,369 202,533 93,859 320,531 122,020 77,334 94,490 14,939 5,977 256,023 487,006 299,109 178,178 3,214 16,804 lof3 Department Departments that Provide Direct Services to the Citizens of the County 0024 Lower District Court 0025 Facilitites Maintenance 0025 Facilitites Maintenance 0025 Facilities Maintenance 0025 Facilities Maintenance 0025 Facilities Maintenance 0025 Facilities Maintenance 0025 Facilities Maintenance 0025 Facilities Maintenance 0025 Facilities Maintenance 0026 Non-Departmental 27 Coroner 0029 Prosecutor 0029 Prosecutor 0029 Prosecutor 0029 Prosecutor 0030 Sheriff 0031 Treasurer 0032 Upper District Court 0033 Pest Control 0034 Conference of Government 0036 Library Advisory Board 0037 Emergency Management 0040 Criminal Justice 0043 Declaration of Emergency 0044 Post Employment Benefits 0045 Historical Document Program 0046 Current Use 0047 Upper Co Ground Water 0060 Computer Replacement 109 County Fair 101 Airport 103 Youth Amatuer Sports Activity 105 Community Services 106 County Road 107 Flood Control lOB Public Facilities 110 EIS Trust 112 Low Income Housing 113 Recreation 114 Homelessness Housing 115 Trial Court Improvements 116 Public Health See Accompanying Narrative Kittitas County Central Services Simplified Indirect Cost Allocation For the Year Ended December 31, 2015 Sub Department a b c Totat Costs Add~ional Costs Excluded Costs 12-31-2015 ie Depr, Rev Lower District Court 1,049,521 Motorpool 10,661 Maintenance Vehicles 8,819 Courthouse 385,142 615,393 (24,633.87) Sorenson Building 101,384 Upper District Court 125,561 Permit Center 53,433 Jail 299,435 Sheriff Admin 34,862 Building Projects 181,285 Non-Departmental 2,227,474 (2,121,148.16) Coroner 205,179 Prosecutor Admin 943 ,545 Prosecutor Support Enforcement 114,692 Prosecutor Civil 606,189 (131,522.88) Prosecutor Sexual Assualt Interv 12,573 Sheriff 6,896,477 Treasurer 533,694 2,973 (313,594) Upper District Court 538,517 Pest Control 29,652 Conference of Government 309 Library Advisory Board 134,000 Emergency Management 168,909 Criminal Justice 18,789 Declaration of Emergency 0 Post Employment Benefits 54,894 Historical Document Program 11,431 Current Use 144 Upper Co Ground Water 10,109 Computer Replacement 47,203 County Fair 1,593,214 Airport 140,554 Youth Amatuer Sports Activity 3,627 Mental Health 1,021,216 County Road 16,448,291 Flood Control 489,048 Public Facilities 640,954 EIS Trust 2,650 Low Income Housing 40,720 Recreation 16,536 Homelessness Housing 228,366 Trial Court Improve men IS 86,816 Public Health 1,474,027 d e Unallowable Indirect Direct All Other Costs Costs SalariesJWages Direct Costs a+b-f 554,161 495,360 2.566 10,661 8,819 (2,430) 69.579 158,039 842,497 40,970 60,414 433 125,128 20,952 32,481 31,746 267,689 7,586 27,275 6,000 175,285 (11,733.13) 94,593 53,436 2,174,038 87,256 117,923 622,911 320,634 80,174 34,519 88,953 348,134 258,055 6,634 5,939 3,903,074 2,993,403 (7,789) 215,285 272,189 264,478 320,653 217,864 29,652 223 86 134,000 31,098 137,811 18,789 54,894 7,253 4,178 144 10,109 20,676 47,203 328,656 1,264,558 28,381 112,173 18,416 1,002,800 1,933,338 14,514,953 34,541 454,507 841 640,113 109 2,541 474 40,246 2,689 13,847 2,589 225,777 17 ,216 69,600 654,016 620,011 20f3 Kittitas County Central Services Simplified Indirect Cost Allocation For the Year Ended December 31,2015 Department Sub Department Departments that Provide Direct Services a b c d e to the Citizens of the County Total Costs Additional Costs Excluded Costs Unallowable Indirect Direct All Other 12-31-2015 ie Depr, Rev Costs Costs Salaries/Wages Direct Costs a+b-f 118 Veterans Assistance Veterans Assistance 42,024 42 ,024 119 911 Excise 911 Excise 630,481 630,481 120 311 Os Clerk 3/1 Os Clerk 112,860 73,168 39 ,692 120 3/1 Os Juvenile 3/1 Os Juvenile 31,910 20,455 11,455 120 3/10s Prosecutor 3/10s Prosecutor 209,709 144,498 65,211 120 3/10s Sheriff 3/1 Os Sheriff 1,018,053 546,747 471,306 120 3/1 O's Admin 3/1 D's Admin 0 121 Treasurer ULiD Treasurer ULiD 1 1 122 Treasurers M&O Treasurers M&O 59,889 27,929 31,960 123 Noxious Weed Noxious Weed 374,724 194,738 179,986 125 Auditor Centenial Doc Auditor Centenial Doc 91,212 91 ,212 126 Leased Water Leased Water 25,000 127 Misdemeanant Probation Misdemeanant Probation 747,090 475,277 271,813 130 Prosecutor Victim Witness Prosecutor Victim Witness 127,671 80,079 47,592 131 Drug Enforcement Drug Enforcement 10,000 10,000 134 Public Defense Public Defense 36,350 36,350 135 Forfeited Drug Proceeds Forfeited Drug Proceeds 622 622 136 Adu~ Misd Pre Diversion Adult Misd Pre Diversion 60,850 60,850 140 Hotel Motel Hotel Motel 701 ,591 7,071 694,520 142 Real Estate Excise Tax Tech Real Estate Excise Tax Tech 9,085 9,085 202 2010 GO Bond 2010 GO Bond 884,756 884,756 205 Refund Fund Refund Fund 15 206 CRID CRID 0 301 Capital Improvements Capital Improvements 1,055 ,646 1,055,646 302 Courthouse Jail Expanison Courthouse Jail Expanison 0 309 Rodeo Grounds Capital Improve Rodeo Grounds Capital Improve 0 401 Solid Waste Solid Waste 3,374,632 412,812 2,961,B20 402 Community Development Service Community Development Service 1,442,989 692,131 501 ER&R ER&R 2,452,888 189,840 2,263,048 511 Unemploymenl Unemployment 26,592 26,592 601 Jerry Williams Library Trust Jerry Williams Library Trust 31 31 Total Direct Services 54,567,114 618,366 (2,590,898) (21,952) 541,524 14,921 ,380 39,484,600 0 TOTAL 56,117,145 654,905 (2,835 ,272) (25,235) 1,880,438 14,921 ,380 39,484,600 0 (56,117,142) 3 Indirect Cost Rate Computation: Indirect Costs divided b ~ 1,880,438 Indirect Cost Rate = 12:60%1 Direct Salaries & Wages 14,921,380 Adopted Rate = 1 1~%1 Notes: Apply this rate to total allowable salaries for each claim for reimbursement See Accompanying Narrative 3of3 NARRATIVE Kittitas County Central Services Simplified Indirect Cost Allocation Plan For Year Ended December 31,2015 In order for the county to comply with federal regulations, 2 CFR Part 200, Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance); Kittitas County has to adopt a simplified Central Services Indirect Cost Allocation Plan . This Central Services indirect cost allocation plan is for accounting, information technology, communications, and human resources which provide departments centralized services. This is a process whereby these central services costs can be identified and assigned to benefitted activities on a reasonable and consistent basis. This central service cost allocation plan provides that process. Each county department/fund is listed showing the total 2015 actual expenses and 2015 direct salaries and wages. The distribution base is the direct salaries & wages of each department/fund . The departments are divided into 2 categories: Indirect Functions that Provide Services to the Service Providing Units and Departments that Provide Direct Services to the Citizens of the County. The Indirect functions are departments that provide Central Services to each county Department. The other Departments provide services directly to the citizens. Those departments may have some indirect costs . The explanation of each of these services is listed below. 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. Capita lized A ssets -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. Central S'ervlces -services that are provided to the organization , the customers of the Central Services are the internal departments, which include Auditor Accounting, Information Technology, Communications , and Human Resource. Central Service Cost allocation plan -means the documentation identifying, accumulating , and allocating or developing rates based on the allowable costs of services provided by a governmental unit on a centralized basis to its departments and agencies. The costs of these services may be allocated or billed to users. Departm'en t -all County Departments and/or County Funds . DepreCiat ion -Allocating the costs of a Capitalized Asset to periods benefiting the assets use. 1 Dire ct Sala r ies & Wages -the 2015 fiscal year end salaries & wages for each department Excluded Costs -Certain items of cost are classified by Uniform Guidance as extraordinary or distorting expenditures and are excluded from the computation of the indirect cost rate i.e. capitalized equipment. Indirect C osts -costs incurred for a common or joint purpose benefiting more than one cost objective Ind irect Cost Rate - a devise for determining in a reasonable manner the proportion of indirect costs each program should bear. It is the ratio of the indirect coast to a direct cost base. Sub Departm ent -additional breakdown of a department expenses for accounting purposes Total Costs -the 2015 fiscal year end actual expenses Unallowable Costs -Certain items of cost are classified by Uniform Guidance as una"owable, which means that federal funds cannot be used for those items of cost. For indirect cost rate calculation; however, these unallowed costs are included in the base along with the direct costs. Some examples for unallowed costs are: Governance, promotional advertising, entertainment, and fines & penalties . Uni form Guidance -United States Office of Management & Budget, 2CFR Part 200, Uniform Administration Requirements, Cost Principles and Audit Requirements for Federal Awards establishing principles and standards for determining costs for Federal awards carried out through grants , cost reimbursement contracts, and other agreements with governmental units. FINANCIAL INFORMATION Accounti ng Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Audited Data Kittitas County is audited annually by the State Auditor's office. The audits consist of Financial and Single Audit and the Accountability Audit. The Financial and Single Audit was issued on September 29, 2016, Report #1017601 . The report stated: We issued an unmodified opinion on the fair presentation of the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information in accordance with accounting principles generally accepted in the United States of America (GAAP). Internal Control over Financial Reporting: • Significant Deficiencies: We reported no deficiencies in the design or operation of internal control over financial reporting that we consider to be significant deficiencies. • Material Weaknesses: We identified no deficiencies that we consider to be material weaknesses. We noted no instances of noncompliance that were material to the financial statements of the County. 2 Federal Awards Internal Control over Major Programs: • Significant Deficiencies: We reported no deficiencies in the design or operation of internal control over major federal programs that we consider to be significant deficiencies. • Material Weaknesses: We identified no deficiencies that we consider to be material weaknesses. We issued an unmodified opinion on the County's compliance with requirements applicable to its major federal program. We reported no findings that are required to be disclosed in accordance with 2 CFR 200. 516(a). Dep reci at ion Capital assets, which includes property, plant, equipment, and infrastructure assets, (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type columns in the government-wide financial statements. Capital assets are defined by the county as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Kittitas County has elected to use the modified approach to account for the infrastructure account; Gravel Roads, which eliminates the need to report depreciation expense. Computer Software is reported as Intangible Assets with a capitalization limit of $5,000 and is not depreciated. Capital Leases are defined as long term debt to the county . The asset is tracked but there is not value placed in the Capital Assets. Capital Leases are determined by one of the following four criteria; 1) The lease transfers ownership of the property to the lessee by, or at, the end of the lease term; 2) The lease contains an option to purchase the leased property at a bargain price; 3) The lease is equal to or greater than 75% of the estimated economic life of the leased property; 4) The present value of rental and other minimum lease payments, excluding that portion representing executory costs to be paid by the lessor, equals or exceeds 90% of the fair value of the lease property. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of the capital assets of business- type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the primary government are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings & Improvements 5-60 Improvements other than Buildings 5-50 3 Machinery & Equipment 3-20 Roads, Guardrails & Traffic Signals 20 Bridges 51 Time and Attendance Kittitas County uses an electronic time and attendance system to track employee's time. Employees who allocate their time are required to post their time by project or by project time distribution. This allows the time costs to be charged to the specific project. Travel Reimbursements Kittitas County's travel policy for 2015 followed the Federal Guidelines for employee reimbursement of travel costs. Kittitas County uses the High-Low cost of travel reimbursement. INDIRECT FUNCTIONS Auditor -Accounting Reimbursement for Expenses You must use the Kittitas County Claim for Expense Form to ask for reimbursement of expense. This form is on CAMAS. Meals are reimbursed as follows: You must be-t~av.eling away from home overnight to rece ive meal reimbursement (IRS requ irement) Breakfast Lunch Dinner Incidentals TOTAL 9.0Q -$11.00* $12.00 -$16.00* $26.00 -$33.00* ~.:..QQ. -$ 5.00* $52.00 -$65.00* "High Cost area established King County Mileage Reimbursement Mileage Rate is 57.5 cents per mile for the use of your personal vehicle. The Accounting Division is responsible for the Budgeting, Auditing and Accounting for the county. The total Auditor's Accounting Division 2015 actual expenses were $411,741. The accounting division audits the vouchers and payrolls and processes the warrants for the junior taxing districts. The allocation for the amount of time the accounting division spends on the other districts is 4.36% of the total hours. The amount of salaries, benefits and supplies allocated, $395,691; as an indirect cost is 95.64%. All other operating expenses were allocated at 100% with the exception of penalties and fines which are not allowed. The amounts of excludable and unallowable costs are $15,722 which includes salaries reimbursed by other funding sources. Total Expenditures Less: Excludable Cost (District 4.36%) Total Indirect Costs 4 $411,741 -16,049 $395,692 Information Technol og y (Services) Information Technology is responsible to maintain the county computer equipment and software for all departments. Total 2015 actual expenses for Information Technology were $868,528 plus depreciation of $33,663 for total expenses of $902,192. Of the total expenses $46,717 are excluded costs and $3,283 are unallowable costs. Total Expenditure Plus Depreciation Less Excluded Costs Less Unallowable Costs Total Indirect Costs These excluded/unallowable costs include the following: Capital Outlay Capital Lease and interest Total Excludable/Unallowable Costs Communications $868 ,528 33,663 -106,662 -3,283 $792,247 59,945 46,717 $106,662 The Communications Department is responsible for the County's postage machine; the county's phone system and the copier, which is located in the auditor's office. Total 2015 actual expenses for Communications were $96,395, plus depreciation of $2,876 and of the expenses $84,508 are excludable costs. These excludable costs include the following: Total Expenditures Plus Depreciation Less Excludable Costs Total Indirect Costs These excluded/unallowable costs include the following : Supplies purchase for copier Telephone courtesy phones Postage -billed direct Equipment Maintenance for copier Lease on Postage Machine Total Excludable Costs Human Resource $96,395 2,876 -84,508 $14,763 $ 571 139 75,000 659 8,138 $84,508 The Human Resource Department administers various programs involving recruitment, compensation, benefits, collective bargaining, and personnel policy. The 2015 actual expenses are $173,366. The Human Resource is responsible for Civil Service and these costs are excludable as they only represent the Sheriff's office which is considered 15% of Salaries and Benefits, and other operating expenses for a total of $37,155 excludable costs. Items that affect the entire employee base are presented at 100%. Total Expenditures Less Excludable Costs Total Indirect Costs 5 $173,366 -37,155 $136,211 DEPARTMENTS THAT PROVIDE DIRECT SERVICES Auditor-Administration The Auditor is responsible for 5 sub-departments; Accounting, Recording, Vehicle Licensing; Elections and Voter Registration. There are 13 employees in the office. During 2015 the accounting staff had 5 full time employees. The total paid hours for the accounting staff was 10,982 out of 29,419 or 37.33%, the accounting staff salaries were $263,715 out of $595,792 or 44.26%; the average of both is 40.80%. The expenses were distributed by the 40.80% except for the costs related to other divisions within the office. The total Auditor's Administration 2015 expenses are $122,339. The amount for the indirect allowable costs is $49,874. Facilities Maintenance -Motor pool The facilities maintenance expenses for the motor pool was $10,656. The total mileage used by each employee was divided by the total miles used for all pool cars. The 2015 amount of indirect usage for Auditor's Accounting, Human Resource, Information Technology and a percentage of County Treasurer is $2,566. County Auditor Administration and Facilities Maintenance did not have vehicle usage that would be included. Department Auditor Accounting Information Technology County Treasurer Human Resource Total Motor Pool Costs Facilities Maintenance Percent of total Usage 3.07% 14.00% 1.89% 5.11% Allocation usage 100% 100% 100% 100% Amount Total costs x Percentage of Usage x Allocation Usage 327 1,492 202 545 2,566 The facilities maintenance expenses for the Courthouse were $385,142; plus $615,393 for depreciation of capitalized expenses for a total of $1,000,536 costs. There were $29,443 excludable costs as these were billable cost to other departments, i.e. Solid Waste. There were $2,430 of Unallowable costs for penalties. The total allowable costs are $968,662. The allowable costs were divided by the square footage of the building. The building square footage is 73,707. The total expenses divided by the square footage equals $13.14 per square foot. The allowable indirect costs for the Facilities Maintenance total $69,579. The following is the breakdown . Room Auditor's Accounting Accounting Manager Human Resource Treasurer's Office County Auditor Information Services Mail Room Square Footage 345 .00 74.00 916.40 1,892.84 152.10 2,668.00 79.05 6 % allowed 100 100 100 60 44 100 100 TOTAL Amount $ 4,534 972 12,043 15,042 885 35,063 1,038 $69,579 Non -Depa rtmental This department's expense for 2015 is $2,227,473. The indirect cost from this department is for the state auditor, retrospect ive rating and dues. The state auditor costs for 2015 were $75,274. The audit was for the Single and Financial Audit and the Accountability Audit. The retrospective rating is for additional premiums that are due to the Department of Labor & Industries for claim expenses above the plan choice. The dues that affect all departments, WSAC, WACO, NACO and state purchasing are also allocated as an indirect expense . The total amounts of indirect costs are $18,712. Treasurer The County Treasurer is responsible for the collection of the taxes, receipting of all money from all departments/funds , investments and the redemption of all county warrants. The amount of cash and investments on hand as of December 31, 2015, was $112,966,190 of which 40.67% was for County funds and 59.33% was for the Special Purpose districts . The total expenses for 2015 were $528,393 , plus depreciation of $2 ,973 for a total of $531 ,667. The excludable expenses were calculated at the 59 .33% or $313,594. There are $2,789 unallowable costs for leases and capitalized equipment. The total amount of allowable indirect costs for the Treasurer is $215,285. Compu ter Replacement The total 2015 computer replacement expenses were $47,203 of this amount $20,676 was the amount of direct purchases for Human Resource, Treasurer and Information Technology. GENERAL COSTS OF GOVERNMENT Under Paragraph 200.444 of Uniform Administration Requirements , Cost Principles and Audit Requirements for Federal Awards the general costs of government are unallowable. The following unallowable costs include: • Salaries and expenses of the Board of County Commissioners, • Cost of the judicial branch of government • Cost of prosecutorial activities unless treated as a direct cost to a specific program if authorized by statues or regulation • Cost of other general types of government services normally provided to the general public such as fire and police CENTRAL SERVICES INDIRECT COST CALCULATION The Central Services Departments ; Auditor's Accounting, Information Technology, Communications, and Human Resources had indirect costs of $1 ,338,913. With the other indirect costs from other departments totaling $541 ,524 the total county indirect costs are $1 ,880,438. The County elects to use the simplified method for the rate computation based upon salaries. The total County indirect costs divided by direct wages. The wages paid in 2015 were $14,921,380. 7 Indirect Cost Rate Computation: Indirect Costs divided by Direct Salaries & Wages $ 1,880,438 $14,921,380 Notes: Apply this rate to allowable salaries and wages 8 Indirect Cost Rate =12.60% Adopted Rate = 11.25%