Capital Accounting Partners
(a Non CPA firm)
Services
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User Fee Studies
OMB 2 CFR Part 200 Cost Allocation Plans/Full Cost Allocation Plans
A 2 CFR Part 200 compliant cost plan as well as a full cost allocation plan calculates general fund support to non-general fund operations. Shortly after the federal government began to distribute funding through grants, it recognized that local agencies were not being reimbursed for the indirect costs incurred to provide the programs that the federal government mandated. To address this issue, the Office of Management and Budget developed cost principles that defined the processes and mechanisms for reimbursing agencies for their indirect costs. The cost plan became the mechanism for developing and presenting each agency's indirect costs. The guidelines for cost plans for state, local and Indian tribal governments are currently included in the new Uniform Guidance (Super Circular), 2 CFR Part 200. These principles were previously known as OMB 2 CFR Part 225 and Circular A-87.
This process was then further expanded to create full cost allocation plans. OMB 2 CFR Part 200 cost plans are a more conservative approach to calculating indirect costs for local agencies. This plan is bound by federal government restrictions, eliminating certain costs. The full cost plan was developed to expand on these guidelines while getting a more accurate look at an agency's indirect costs. The full cost plan is used to get indirect cost reimbursement for outside funds within the agency that uses the support services, as well as to include a full cost component in to the calculation of user fees and rates.
The cost allocation plan identifies and allocates indirect costs to the agency's operating departments. The departments identified as those performing supporting functions for other departments are known as Central Service Departments (CSDs). The cost plan follows federal grant methodologies to allocate indirect costs from the CSDs to the agency's operating (or receiving) departments. The costs allocated to receiving departments are then used to claim reimbursement, in the case of grantee departments, or as an additional component of overhead costs for those operating departments that serve external entities.
CAP and its partners have prepared hundreds of cost allocation plans and have reviewed thousands of plans over the last 26 years.
CostTree - Cloud-Based Cost Allocation Plan Software
CostTree is the first cloud-based cost allocation software. It is the best tool on the market today for cost allocation, and prepares OMB and full cost allocation plans and ICRPs. Capital Accounting Partners works hand in hand with CostTree and offers an hourly rate of consulting through CostTree. To learn more, please visit www.CostTree.net or call CostTree at 844-267-8873.
Indirect Cost Rate Proposal
An indirect cost rate proposal (ICRP) is created to calculate the rate of overhead to tack on to a service or project to charge to outside individuals or agencies for using that service. ICRP's are used to make sure agencies get their full cost reimbursement for grants, user fees, and SB 90 claims.
ICRPs are calculated for departments that are direct labor departments in nature, and calculate an overhead rate to assure that the “full cost” of providing the service is recovered. The cost allocation plan is a component of the ICRP, but in this plan, departmental overhead is also added to capture all overhead costs that should be a part of a person's overhead cost rate.
Rate Studies
Rate studies are used by local government agencies to determine the cost of services provided. The goal of any agency is to recover the full cost of services, and in order to do that a rate study must be performed.
We take into account, not only the time spent by the direct person assigned to work on a service, but the departmental indirect costs as well, which are a key component in determining the correct fees.
CAP works with the agency to determine the cost of services from start to finish and everyone involved in order to ensure your agency can recover its full cost of services.
User Fee Studies