COST ALLOCATION PLAN AN OVERVIEW

Background Federal & State Guidelines The Cost Plan Type of Costs Carry Forward Pension Obligation Bonds Questions

Background –Cognizant Agency –The Cost Plan Section

Federal & State Guidelines –2 CFR Part 225 (OMB A-87 Cost Principles for State, Local & Indian Tribal Governments) –ASMB C-10 (Developing Cost Plans & Indirect Cost Rates) –Handbook of Cost Plan Procedures for California Counties

The Cost Plan –Purpose: Document (Financial Records) Identify (Allowable & Unallowable) Allocate (appropriate and equitable) Summarized (via the Cost Exhibit)

Types of Costs –Space –Equipment –Central Service Costs

Carry-Forward –Accepted method for adjusting the Estimated Plan to Actual – Estimated Plan is based on Actual Costs –Carried to Exhibit A for claiming

Pension Obligation Bonds –OMB letter dated January 31, 1994 – Interest on bonded debt to fund an unfunded pension liability –DHHS letter dated February 13, 2003 – Policy Interpretation relative to refinancing (including refunding or restructuring POB’s) –SCO letter dated April 9, 2003 – Pension Obligation Bonds - Refinancing/Restructuring

Questions