Indirect Cost Rate Study

The County of Yuba ("The County") is seeking to contract with an independent firm to develop an indirect cost study and to develop the related indirect cost rate suitable for grants under the Uniform Grant Guidance (to be able to negotiate our rate annually with our cognizant agency); an indirect cost rate for the allocation of capital projects; an indirect cost rate for the allocation of equipment usage, proper internal service fund allocations, internal service fund technology cost allocations, Public Works Department and related capital projects burden/overhead calculation.

The County seeks to ensure that administrative costs incurred on behalf of the non-federal and federal programs operated by the County are recovered to the maximum extent possible under current guidelines. This will require adequate documentation of these costs, justification of their benefit to federal programs, accumulation of administrative overhead, and optimal allocation to programs served.

The Federal Office of Management and Budget (OMB) 2 CFR Subtitle A, Chapter I: Government‐wide Guidance for Grants and Agreements and Chapter II and Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards was issued to meet an expressed need for a more uniform approach to the problem of determining costs of federally aided programs. The OMB Uniform Guidance provides principles and standards for determining both direct and indirect costs applicable to federal grants and contracts with state and local governments. See Appendix K for Cost Principles: Policy Guide, Factors Affecting Allowability of Costs, Allocable Costs and Adjustments of Previously Negotiated Indirect Cost Rates (OMB Uniform Guidance).

The charging of joint or common costs against federal grants and contracts requires the prior preparation of cost allocation plans. This plan must, in some cases, be successfully negotiated with the federal cognizant agency or state agencies. All are subject to single audit. The County must prepare indirect cost rate proposals which are subject to negotiation and/or audit by program agencies.

Internal service funds of the County include the following:

• Equipment Replacement - This fund is used to account for the normal replacement of County vehicles and equipment used by County departments.
• Fleet Management – This fund is used to provide timely and cost-effective fleet services, including equipment maintenance and rental, to all user departments to maximize availability, serviceability, safety, and appearance of all the County’s vehicle and equipment.
• Municipal Office Buildings – This fund is used to account for the rental and maintenance, repairs, and security of The Yuba County Government Center and other municipal office buildings.
• Technology Services - This fund is used to account for central data processing, telephone systems, and technology services.
• Technology and Infrastructure – This fund is used to account for technology/infrastructure resources.
• Billing and Collections Services (Billing and Collections) - This fund is used to account for the billing and collection of utility accounts, occupational taxes, and special assessments. It also includes cashiering functions and collection of invoices.
• Supply Management - This fund is used to account for inventory management and warehousing services.
• Insurance Services ("Insurance") - These funds are used to account for insurance and risk management services for all funds. Insurance includes self-insurance, workers’ compensation insurance, commercial insurance, group medical insurance, and group life insurance.