2023 Cost Allocation Plan FINAL - Laserfiche WebLink

Home Browse Search

Kittitas County Central Services Simplified Indirect Cost Allocation Plan Effective January 1, 2023 SUMMARY The following Central Services Indirect Cost Allocation Plan (“Plan”) memorializes a cost rate for the provision of indirect services, i.e. services provided by certain County Departments to other County departments. The Plan 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 cost rate reflects the countywide indirect services costs as a percentage of direct service (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 2022 indirect cost rate is calculated according to the federal Office of Management and Budget simplified method as follows: This plan distinguishes Indirect Service departments (those that primarily provide services to other County departments) from Direct Service 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 90% 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-Departmental, 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. Central Service Department Costs 2,351,886 Other Indirect Costs 711,104 Total Indirect Service Costs 3,062,990 Total Direct-Cost Personnel 22,340,162 Indirect Cost Rate 13.7% Auditor-Recommended Rate 13.7%