Section 602.2 - Cost allocation plans.

602.2 Cost allocation plans. If a cost allocation plan is determined to be the appropriate means of distributing costs among governmental entities or activities and such plan is accepted by the department, all costs subject to the plan must be allocated in accordance with such plan. Approval of a cost allocation plan will not preclude the department from requiring adjustments of any costs derived by means of the methods set forth in the plan.

(a) Intergovernmental unit cost allocation plans. Cost allocation plans which provide a basis for distribution of costs of a county, municipality or other governmental subdivision to a social services district should be established in accordance with Federal, State and department requirements. Such plans may be administered by a fiscal officer not under the direct control of the district, but the district will remain responsible to the department for insuring that the plan adheres to the department's requirements.

(1) Districts are required to submit an annual certification to establish their authority to claim costs pursuant to the plan for that fiscal year.

(2) Plans will not permit direct expenses to be included as indirect expenses when Federal, State or department procedures preclude such inclusions.

(3) Allocated expenditures must be claimed for reimbursement in accordance with the requirements applicable to the district submitting the claim, including any purchase of service contract requirements or other requirements.

(4) Agreements between the district and other governmental agencies pertaining to the allocation of administrative costs, either directly or indirectly, must be made in accordance with department requirements.

(b) Local district cost allocation plans. Administrative costs of a social services district must be distributed and claimed in accordance with Federal, State or department requirements reflected in a cost allocation plan established for the district and approved by the department.

(1) The district must certify annually to the department that a complete organizational review has been conducted and all staff have been assigned appropriate classification or functional codes in accordance with department instructions. If circumstances change within a year which require that a district's allocation procedures be revised, districts will seek revisions to cost allocation plans as such circumstances arise, subject to department approval.

(2) Administrative payrolls must be coded by defined classifications or functions in accordance with department instructions.

(3) Fringe benefit rates must be determined annually and the rates must be applied monthly to determine allocated fringe benefit costs.

(4) Nonsalary expenditures must be coded to defined classifications or functions in accordance with department instructions.

(5) Districts must assign the cost of social services workers to specific classifications in accordance with ratios or methods approved by the department.

(6) Districts must use the department calculation of distribution percentages for apportionment of costs related to welfare management systems or for apportionment of any other costs involving data that must be obtained from the department.

(7) Accurate statistics for designated program activities must be maintained for use in distributing functional or other costs to specific classifications.

(8) Appropriate documentation and audit information must be retained and made available for department, State and Federal review.

(9) Districts will be responsible for the preparation and submission of required schedules and supporting documentation to obtain Federal, State or other reimbursement.

(10) Districts must comply with any other requirements that may be imposed by the department.

(c) Other cost allocation plans. A cost allocation plan approved by the department may be used as a means of allocating costs. If a cost allocation plan is prescribed by or for the department or is accepted by the department as a condition of reimbursement from a funding source, such plan must be used by the district until otherwise directed by the department.

 

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