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9 <br /> (b) For Indian tribes and Councils of Governments (COGS) (see definition for Local <br /> government in 2& 00.1 of this part),up to 50%of salaries and expenses directly attributable <br /> to managing and operating Federal programs by the chief executive and his or her staff <br /> can be included in the indirect cost calculation without documentation. <br /> § 200.416 COST ALLOCATION PLANS AND INDIRECT COST PROPOSALS. <br /> (a) For states, local governments and Indian tribes, certain services, such as motor pools, <br /> computer centers, purchasing, accounting, etc., are provided to operating agencies on a <br /> centralized basis. Since Federal awards are performed within the individual operating <br /> agencies, there needs to be a process whereby these central service costs can be identified <br /> and assigned to benefitted activities on a reasonable and consistent basis. The central <br /> service cost allocation plan provides that process. <br /> (b) Individual operating agencies (governmental department or agency), normally charge <br /> Federal awards for indirect costs through an indirect cost rate. A separate indirect cost <br /> rate(s)proposal for each operating agency is usually necessary to claim indirect costs under <br /> Federal awards. Indirect costs include: <br /> (1) The indirect costs originating in each department or agency of the governmental unit <br /> carrying out Federal awards and <br /> (2) The costs of central governmental services distributed through the central service cost <br /> allocation plan and not otherwise treated as direct costs. <br /> (c) The requirements for development and submission of cost allocation plans (for central <br /> service costs and public assistance programs)and indirect cost rate proposals are contained <br /> in appendices V, VI and VII to this part. <br /> § 200.417 INTERAGENCY SERVICE. <br /> The cost of services provided by one agency to another within the governmental unit may <br /> include allowable direct costs of the service plus a pro-rated share of indirect costs. A <br /> standard indirect cost allowance equal to ten percent of the direct salary and wage cost of <br /> providing the service (excluding overtime, shift premiums, and fringe benefits) may be <br /> used in lieu of determining the actual indirect costs of the service. These services do not <br /> include centralized services included in central service cost allocation plans as described <br /> in Appendix V to Part 200. <br /> VI. COST ALLOWABILITY REVIEW PROCESS <br /> PREAPPROVAL COST ALLOWABILITY REVIEW <br /> Before an ARP/CSLFRF-funded project is authorized, Finance must review the proposed cost <br /> items within an estimated project budget to determine whether they are allowable and allocable <br /> and whether cost items will be charged as direct or indirect expenses. This review will occur <br /> Cost Principles Policy 8 <br /> May 2022 <br />