1. COST ALLOCATION PLAN AN OVERVIEW

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

3. Background –Cognizant Agency –The Cost Plan Section

4. 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

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

6. Types of Costs –Space –Equipment –Central Service Costs

7. Carry-Forward –Accepted method for adjusting the Estimated Plan to Actual –2009-10 Estimated Plan is based on 2007-08 Actual Costs –Carried to Exhibit A for claiming

8. 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 http://www.sco.ca.gov/ard/local/ccap/index.shtml

9. Questions