2016 STATEWIDE COST ALLOCATION PLAN DRAFT
FY 2016 is currently under review by Health & Human Services (HHS)
and has not yet been approved.
Statewide Cost Allocation Plan:
Statewide Cost Allocation Plan (SWCAP) is the process that recovers for the General Fund the central service agencies’ expenditures from federal and other funds.
All revenue received from indirect costs is deposited into the state general fund as revenue (revenue code 5604).
A central service agency supports the general operation of State government and provides services to other State Departments.
States that wish to charge the costs of central support services to federal awards must first prepare a Statewide Cost Allocation Plan (SWCAP) to allocate those costs to departments or units they benefit.
States are required to submit a SWCAP to U.S. Department of Health & Human Services (HHS) for each year in which it claims central service costs under federal awards.
Only State agencies that are funded from state funds other than general and federal fund are charged directly for cost allocation. Agencies with other state funds are charged an appropriate amount for their portion of the allocated statewide costs.
Section 1. Authority. W.S.9-2-1004(c)BUDGET DIVISION; DUTIES; RECEIPT OF MONTHLY STATEMENTS OF INCOME, REVENUES AND EXPENDITURES OF STATE AGENCIES AND OFFICES; AUTHORITY TO CONTRACT; PURPOSES.
Section 2. CFR Part 225, Appendix C, defines the central service cost allocation plan as the documentation identifying, accumulating, and allocating or developing billing rates based on the allowable cost of services provided by a governmental unit on a centralized basis to its department and agencies..
OMB Circular A-87: http://www.whitehouse.gov/omb/circulars_a087_2004
Wyoming uses a Simplified Method:
Where a grantee agency's major functions benefit from its
indirect costs to approximately the same degree, the allocation of indirect
costs may be accomplished by (1) classifying the grantee agency's total costs
for the base period as either direct or indirect, and (2) dividing the total
allowable indirect costs (net of applicable credits) by an equitable
distribution base. The result of this process is an indirect cost rate which is
used to distribute indirect costs to individual Federal awards. The rate should
be expressed as the percentage which the total amount of allowable indirect
costs bears to the base selected. This method should also be used where a
governmental unit's department or agency has only one major function
encompassing a number of individual projects or activities, and may be used
where the level of Federal awards to that department or agency is relatively
Both the direct costs and the indirect costs shall exclude capital expenditures and unallowable costs. However, unallowable costs must be included in the direct costs if they represent activities to which indirect costs are properly allocable.
The distribution base may be (1) total direct costs (excluding capital expenditures and other distorting items, such as pass through funds, major subcontracts, etc.), (2) direct salaries and wages, or (3) another base which results in an equitable distribution.