HomeMy WebLinkAboutRES-2022-106cl[)
KITTITAS COUNTY BOARD OF COUNTY COMMISSIONERS
RESOLUTION NO 2022- l0L0
A Resolution Adopting a Central Services Simplified lndirect Cost
Allocation Plan for Budget Year 2O22
WHEREAS, Kittitas County is a recipient of Federal grant awards, and
WHEREAS, pursuant to CFR Title 2, Subtitle A, chapter ll, Part 200, Uniform
Administrative Requirements, Cost Principles, and audit Requirements for Federal
Awards, local government grant recipients are required to adopt a central services
simplified indirect cost allocation plan in order to claim such costs for reimbursement, and
WHEREAS, the County Auditor has determined the lndirect Cost Rate to be
16.89%, based on the fair and equitable distribution base of direct salaries & wages of
each departmenUfund, and;
WHEREAS, the County Auditor has certified the lndirect Cost Rate of 15o/o; a
reduction from the actual calculation to allow for a margin of error, and
WHEREAS, the attached documentation shows the calculations of the lndirect
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 lT RESOLVED that the Board of County Commissioners
adopts the lndirect Cost Rate for Kittitas County at 15o/o based on the fair and equitable
distribution base of direct salaries & wages, for federal grant reimbursement as certified
by the County Auditor, effective January 1,2022.
ADOPTED this 3rd day of May,2022
BOARD OF COUNTY COMMISSIONERS
, WASHINGTON
C
ce-Chairman
m rsstoner
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Kittitas County Auditor - Agenda Staff Report
Prepared by: Brian Carlson, Budget and Finance Director
Agenda Date: May 3,2O22
Topic: 2O22lndirect Cost Allocation Plan
Action Requested:
Approve Resolution adopting the 2O22 Central Services lndirect Cost Allocation Plan
Summary:
Background
Pursuant to Federal regulations, and as a recipient of Federal grant awards, the County must annually
prepare and adopt an indirect cost allocation plan.
This agenda item consists of a Resolution to authorize the plan f or 2022.
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lndirect Cost Allocotion refers to the cost of certain county departments to provide services to other
County Departments. This enables a quantifiable, reasonable and consistent way to offset the County's
costs to administer grants.
lndirect Cost Allocation is also applicable to certain County contracts, and for internal accounting and
budgeting, e.g. Departments and/or Funds pay one another for the provision of services.
A cost allocation plan is required for most Fed grant recipients. A plan's threshold requirements are
established by the Federal Office of Management and Budget.
The rate calculation is formula-driven, and uses the most-recent audited financial data. Therefore, there
is commonly a two-year lag for implementation of a given rate. E.g.2O2O data is used to establish a rate
for operation s in 2022.
The rate calculation is forwarded to the County Auditor, who then commonly applies a margin of error
to arrive at a final "certified" rate. The Certified rate is forwarded to BOCC for review/approval.
The current plan and recent history are shown below:
Effective Year 20{9 2020 2021 2022
Actual Rate 13.01o/o 14.44o/o 13.360/o 16.89%
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
The 2O22 "actual" rate increase is driven by likely one-time expense increases in 2020, primarily in the lT
Department.
Additional plan information and calculations are contained in the attached 2022 tndirect Cost Allocation
Plon
Attachments (2):
o Resolution 2022 lndirect Cost Allocotion
o 2022 lndirect Cost Allocotion Plon