HomeMy WebLinkAboutResolution for Cost Allocation Plan and Supporting DocumentsBOARD OF COUNTY COMMISSIONERS
COUNTY OF KITTITAS
STATE OF WASHINGTON
RESOLUTION ADOPTING THE KITTITAS COUNTY PUBLIC HEALTH DEPARTMENT
SIMPLIFIED INDIRECT COST ALLOCATION PLAN
FOR
YEAR ENDED DECEMBER 31, 2020
RESOLUTION No. 2022 -_______
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 21%, based on the
fair and equitable distribution base of direct salaries & wages of each division/program, and;
WHEREAS, the County Auditor has approved the Indirect Cost Rate of 21%; 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 HEREBY RESOLVED that the Board of County
Commissioners adopts the Indirect Cost Rate for Kittitas County Public Health Department at
21%, 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, 2021.
ADOPTED this day of __________________.
BOARD OF COUNTY COMMISSIONERS
KITTITAS COUNTY, WASHINGTON
_________________________________________
Chair
ATTEST: _________________________________________
CLERK OF THE BOARD Vice-Chair
_____________________ _________________________________________
□ Julie A. Kjorsvik Commissioner
□ Mandy Buccholz
Kittitas County Public Health Department
Simplified Indirect Cost Allocation Plan
For the Year Ended December 31, 2020
NARRATIVE
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 2020 is used to formulate the 2022 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 2020 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 of the 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 2020 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 Uniform 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 2020 totaled $411,181.78. 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.
Salary and benefit costs were excluded from the calculation that were charged to the
administration program code because these are costs associated with other employees not
included in the indirect cost rate calculation; this is mostly due to paid time off or general
admin costs for the two permit technicians. Costs were also excluded from the calculation
based on the assumption that only 15.92 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 actual FTE for 2020 by the
number of FTE supported by the indirect rate.
Excludable costs included in the Administrative division’s totals included:
Salaries $52,971.71
Benefits $14,603.90
Supplies $462.66
Services and Charges $772.76
Total Excludable Costs $68,811.03
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 and Outlay $2,274.36
Central Services Billings $125,291.15
Total Unallowable Costs $127,565.51
A summary of the department’s indirect costs are as follows:
Total Administrative Division Costs $411,181.78
Less: Total Excludable Costs ($68,811.03)
Less: Total Unallowable Costs ($127,565.51)
Total Indirect Costs $214,805.24
DIVISIONS WITH DIRECT EXPENSES
In 2020, KCPHD had 37 active programs with total expenditures of $2,026,681.87. Of that
amount, $13,258.00 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.
Direct costs included $768,109.27 related to salaries. The final $1,245,314.60 was considered to
be allowable direct costs. These allowable costs include, but are not limited to:
• 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 of 21%. This
recommendation would decrease the 2022 rate over the previous fiscal year’s rate.
Total Costs Exclusions
(2)
Unallowable
(3)Salaries Other Direct Costs Indirect Costs
Direct Services/Programs
611.81 Assessment $40,930.27 $22,491.13 $18,439.14
611.82 Public Information Officer $856.72 $475.69 $381.03
612.11 Health Promotions Administration $17,333.72 $8,887.83 $8,445.89
612.22 Maternal Child Health Block Grant $39,266.83 13,258.00 $14,195.43 $11,813.40
612.24 Oral Health $11,655.09 $5,679.10 $5,975.99
612.29 Clinic Services (Adult, Oversees, Children)$3,536.82 $1,459.41 $2,077.41
612.30 In Person Assister (Health Benefit Exchange)$4,265.97 $2,357.93 $1,908.04
612.31 LSPAN $47,315.33 $25,273.40 $22,041.93
612.32 Immunizations $1,966.13 $1,068.37 $897.76
612.33 FPHS STD Preventive Health $0.00 $0.00 $0.00
612.34 Tuberculosis $395.65 $210.88 $184.77
612.35 HIV/AIDS $14,039.86 $7,581.72 $6,458.14
612.39 FPHS Communicable Disease $1,086,437.80 $316,002.37 $770,435.43
612.40 Syringe Exchange $17,446.38 $8,322.66 $9,123.72
612.44 Tobacco Prevention $6,485.57 $2,828.94 $3,656.63
612.47 DBHR $63,822.60 $21,656.03 $42,166.57
612.49 Chronic Disease Healthy Community $65.54 $37.60 $27.94
612.50 HPV Group Health $0.00 $0.00 $0.00
612.80 PIO Emergency $58.56 $32.25 $26.31
612.88 Bioterrorism $46,011.40 $25,930.05 $20,081.35
612.91 Marijuana Prevention $8,444.91 $3,917.02 $4,527.89
612.92 Overdose Prevention $10,329.60 $5,552.60 $4,777.00
612.93 Safe Kids $2,255.26 $694.07 $1,561.19
612.94 Snap Ed $20,151.92 $10,969.43 $9,182.49
612.95 Medicaid Administrative Match $1,762.87 $601.66 $1,161.21
612.96 ACH Meetings $227.87 $124.74 $103.13
612.00 Community Health Administration $10,692.03 $5,654.09 $5,037.94
615.02 Water $207,508.54 $90,558.57 $116,949.97
615.03 Solid Waste $47,722.03 $23,390.50 $24,331.53
615.04 On-Site Sewage $122,548.83 $65,386.53 $57,162.30
615.05 Zoonotics / Vector $1,684.06 $942.65 $741.41
615.06 Food Safety $106,464.48 $58,016.69 $48,447.79
615.08 Living Environment $27,248.37 $15,013.23 $12,235.14
615.09 Environmental Health Emergency $7.40 $0.00 $7.40
615.56 Food Education/Food Worker Cards $15,359.97 $371.05 $14,988.92
615.00 Environmental Health Administration $28,405.83 $15,048.04 $13,357.79
620.71 Vital Records $13,977.66 $7,377.61 $6,600.05
Subtotal $2,026,681.87 $13,258.00 $0.00 $768,109.27 $1,245,314.60 $0.00
Indirect Costs of Division
Administration Salaries $168,100.18 $52,971.71 $115,128.47
Administration Benefits $50,694.47 $14,603.90 $36,090.57
Supplies $2,557.10 $462.66 $333.43
Services & Charges $62,264.52 $772.76 $9,789.49
Capital Outlay $2,274.36 $2,274.36 $0.00
Central Services of the Entity (1)$125,291.15 $125,291.15 $0.00
Subtotal $411,181.78 $68,811.03 $127,565.51 $0.00 $0.00 $161,341.96
TOTAL $2,437,863.65 $82,069.03 $127,565.51 $768,109.27 $1,245,314.60 $161,341.96
1. This represents the amount of internal 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:Public Health Department Admin FTE Rate:
Indirect Costs $161,341.96 2020 Budgeted FTE 18.85 15.92%
Direct Salaries $768,109.27 Admin FTE 3.00
Kittitas County Public Health Department Indirect Cost Allocation Plan
Based on 2020 Financial Data
Direct Costs
21.01%