WASHOE COUNTY COST ALLOCATION PLAN AND INDIRECT COST RATE
Cost Allocation Plan
It is the intention of Washoe County to recover indirect costs at all opportunities. In support of departments’ efforts to do so, the Budget Division procures a Cost Allocation Plan and Indirect Cost Rate report on an annual basis. Access our Frequently Asked Questions page for more information.
On February 14, 2012 the Board of County Commissioners adopted a policy to require all funds and entities be charged for their portion of allocated central service overhead costs, with a three year implementation plan, for various departments and funds to work toward fiscal sustainability while including the appropriate overhead charge, without additional General Fund subsidy. The implementation strategy for the first year was approved by the Board on April 24, 2012.
Washoe County provides services, such as accounting, purchasing, technology services, etc., to operating departments and agencies on a centralized basis. The central service cost allocation plan provides a process whereby the cost of these services can be identified and assigned to benefiting departments and agencies on a reasonable and consistent basis.
Indirect costs include the costs originating in the department or agency carrying out the grant awards, and the costs of Washoe County central services distributed through the central service cost allocation plan that are not otherwise treated as direct costs.
Indirect costs are a bona fide cost of providing services, and as such need to be accounted for when determining fees, charges for services, or determining the cost of providing grant or other funded programs or activities. Indirect costs are just as tangible as direct costs when accounting for the total costs of providing services.
Washoe County utilizes the Federal recommended methodology for the cost allocation process. The costs included in the Cost Allocation Plan to establish cost allocations or billings are allowable in accordance with the requirements of the Federal Award(s) to which they apply and the provisions of 2 CFR 200.
The following reports are prepared to establish cost allocations of allowable costs and are prepared in accordance with the requirements of Federal Circular A-87, "Cost Principles for State and Local Governments" and the Federal awards to which they apply. Washoe County utilizes the Federal recommended methodology for our cost allocation process, so that we are using an acceptable methodology for requesting Federal and other grant reimbursements, where allowable.