HomeMy WebLinkAbout750740.tiff RESOLUTION
RE: INDIRECT ADMINISTRATION COSTS OF COUNTY AFFECTED
BY FEDERAL GRANT PROGRAMS PURSUANT TO FEDERAL
MANAGEMENT CIRCULAR FMC 74-4
WHEREAS, it has come to the attention of the Board
of County Commissioners Weld County, Colorado, that the
County has been incurring many indirect costs in the admin-
istration of Federal Grant Programs Pursuant to Federal
Management Circular FMC 74-4 in Weld County, and
WHEREAS, it has further come to the attention of the
Board that such indirect costs of administering Federal Grant
Programs in the County are reimbursable by the Federal Gov-
ernment, and
WHEREAS, the Board believes it to be in the best
interests of the County to adopt a Government-Wide Cost
Allocation Program in order to ascertain allowable costs
incurred in supporting Federal Grant Programs .
NOW, THEREFORE, BE IT RESOLVED, by the Board of
County Commissioners, Weld County, Colorado, and it hereby
authorizes and directs Mr. Barton Buss, Director of Management
and Budget for Weld County, to institute those bookkeeping and
accounting services deemed to be necessary in determining
distribution of allocated indirect costs incurred in supporting
Federal Grant Programs Pursuant to Federal Management Circular
FMC 74-4 in Weld County.
The above and foregoing Resolution was, on motion duly
made and seconded, adopted by the following vote on the 14 th
day of May, A. D, 1975.
BOARD OF COUNTY COMMISSIONERS
WELD C UNTY, COLQRADO
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County Clerk and Recorder and
C - k to the Board
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C+unty A torney
750740
LHR 870
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.Q. iJ OFFICE OF BOARD OF COUNTY COMMISSIONERS
PHONE (303) 353-2212 EXT.221,222& 223
P.O.BOX 758
GREELEY,COLORADO 80831
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COLORADO
April 23, 1975
Mr. Willis H. LaVance, Director
Finance and Accounting
Colorado Department of Social Services
1575 Sherman Street
Denver, Colorado 80203
Dear Mr. LaVance:
The Weld County Board of Commissioners hereby announces its intent to
prepare a county-wide cost allocation plan for county fiscal year 1974
pursuant to Federal Management Circular FMC 74-4. We will request
actual cost reimbursement for the second half of county fiscal year
1974, and provisional cost reimbursement for county fiscal year 1975
based on the 1974 report. We are aware that the plans must be sub-
mitted to your office and certifications made to HEW before June 30,
1975, in order to claim full year reimbursement.
Sincerely,
21 �`c)
Glenn K. Billings, Chairman
GKB:br
WELD COUNTY COMMISSIONERS
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GLENN K. BILLINGS
ROY MOSER
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ANDERSON, HUNTER, THOMTE & KURTZ
CERTIFIED PUBLIC ACCOUNTANTS
WELD COUNTY, COLORADO
PROPOSAL FOR ESTABLISHING COST ALLOCATION PLANS
PURSUANT TO FEDERAL MANAGEMENT CIRCULAR FMC 74-4
April 21 , 1975
•
ANDERSON, HUNTER,THOMTE 8. KURTZ
CERTIFIED PUBLIC ACCOUNTANTS
'303. 352-7497
724 8TH STREET GREELEY, COLORADO
RUSSET'. THDMTE.C.P.A. P. 0. BOX 310 60631
CHARLES M.KURTZ,C.P.A.
WILLARD W.HUNTER,JR..C P A.
DARWIN F. SCHWARTZ.C.P.A.
WILLIAM J.5IEBERT,C.F.
WILLIAM G.CHEEDLE,C.P A.
JAMES H.LINE.C_P.A.
RICHARD N.SMITH,C.P.A.
April 21, 1975
Board of County Commissioners
Weld County, Colorado
Greeley, Colorado 80631
Gentlemen:
•
In determining annual grant program appropriations, the federal govern-
ment allows for reimbursement of certain indirect costs which are incurred at
the local government level in administering the grant programs. Indirect costs
are normally accumulated in central service departments instead of the depart-
ment having direct responsibility for grant administration. Physical facilities,
accounting and legal assistance are examples of central supportive services .
Indirect costs incurred by Weld County in support of the welfare assis-
tance payments and social services grant programs are significant. In order
for the county to receive reimbursement for these indirect costs , the federal
government requires a formal government-wide cost allocation plan prepared
for each local government fiscal year after January 1 , 1970. The government-
• wide cost allocation plan allocates central service costs to the Social Services
and other county departments and becomes the basis for submitting a claim to
the State for partial reimbursement. Specific guidelines for plan preparation
are contained in HEW publication DASC-8, A Guide for Local Governmental
Agencies.
Project objective will be to prepare a cyst allocation plan for county
fiscal year 1974 to effect actual cost reimbursement for—The second half on
1974 and provisional cost reimbursement for fiscal year 1975.
Before beginning actual plan preparation, the county is required to submit
a letter to the State Department of Social Services announcing intent to establish
cost allocation plans for the year under consideration.
Following the letter of intent, the first requirement is to prepare a county
government-wide cost allocation plan for the fiscal year. A step-by-step
approach in preparing the plan is outlined below.
Board of County Commissioners
April 21 , 1975
Page 2
• Identify central services which directly benefit other county departments.
• Identify cost of each service rendered.
• Determine equitable bases for allocating service costs .
• Allocated the costs mathematically to the Social Services and
other departments using bases selected.
• Summarize the amounts allocated into a formal comprehensive
county-wide plan for the year.
The second requirement is to obtain certification of local plans by the
county officials and submit information copies of the cost allocation plan to the
State Department of Social Services . Master copies are retained on file at the
county subject to HEW audit.
The final requirement is to claim reimbursement from the State Department
of Social Services for the amount derived in the plan.
William J . Siebert, C.P.A. , will be the partner in charge of the engagement
and will be responsible for overall project management and quality control.
We recommend that key county personnel from the Social Services Depart-
ment business office and county finance department be selected to work closely
with our staff in preparing the plans.
We recommend that work begin on May 15, 1975 and that the project be
completed not later than June 20, 1975.
Our fee will be based on time required at our regular hourly rates and any
direct expenses. Based upon our previous experience in establishing cost
allocation plans, we estimate the total fee for the project will be between
$3 ,750 and $5,000. A portion of the fee will be an allowable cost, subject to
reimbursement through the FMC 74-4 program.
•
Board of County Commissioners
April 21 , 1975
Page 3
Every effort will be made to keep our time at a minimum, consistent with
the engagement requirements.
In the event any problems arise that would significantly increase the
estimated fee, we will consult with you immediately.
Very truly yours,
•
ANDERSON, HUNTER, THOMTE & KURTZ
rcjPartner - In - Charge
The services described in the foregoing letter are in accordance with our
requirements . The terms described in the letter are acceptable to us and are
hereby agreed to.
WELD COUNTY,2.141.4soe—
COLORADO
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By: _i'� ytZGsr
Title:
Date: 4" 30-71
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