Appendix VI to Part 75 - Public Assistance Cost Allocation Plans
45:1.0.1.1.36.6.47.23.14 : Appendix VI
Appendix VI to Part 75 - Public Assistance Cost Allocation Plans A.
General
Federally-financed programs administered by state public
assistance agencies are funded predominately by the Department of
Health and Human Services (HHS). In support of its stewardship
requirements, HHS has published requirements for the development,
documentation, submission, negotiation, and approval of public
assistance cost allocation plans in Subpart E of 45 CFR part 95.
All administrative costs (direct and indirect) are normally charged
to Federal awards by implementing the public assistance cost
allocation plan. This Appendix extends these requirements to all
Federal awarding agencies whose programs are administered by a
state public assistance agency. Major federally-financed programs
typically administered by state public assistance agencies include:
Temporary Aid for Needy Families (TANF), Medicaid, Food Stamps,
Child Support Enforcement, Adoption Assistance and Foster Care, and
Social Services Block Grant.
B. Definitions
1. State public assistance agency means a state agency
administering or supervising the administration of one or more
public assistance programs operated by the state as identified in
Subpart E of 45 CFR part 95. For the purpose of this Appendix,
these programs include all programs administered by the state
public assistance agency.
2. State public assistance agency costs means all costs
incurred by, or allocable to, the state public assistance agency,
except expenditures for financial assistance, medical contractor
payments, food stamps, and payments for services and goods provided
directly to program recipients.
C. Policy
State public assistance agencies will develop, document and
implement, and the Federal Government will review, negotiate, and
approve, public assistance cost allocation plans in accordance with
Subpart E of 45 CFR part 95. The plan will include all programs
administered by the state public assistance agency. Where a letter
of approval or disapproval is transmitted to a state public
assistance agency in accordance with Subpart E, the letter will
apply to all Federal agencies and programs. The remaining sections
of this Appendix (except for the requirement for certification)
summarize the provisions of Subpart E of 45 CFR part 95.
D. Submission, Documentation, and Approval of Public Assistance
Cost Allocation Plans
1. State public assistance agencies are required to promptly
submit amendments to the cost allocation plan to HHS for review and
approval.
2. Under the coordination process outlined in section E, Review
of Implementation of Approved Plans, affected Federal agencies will
review all new plans and plan amendments and provide comments, as
appropriate, to HHS. The effective date of the plan or plan
amendment will be the first day of the calendar quarter following
the event that required the amendment, unless another date is
specifically approved by HHS. HHS, as the cognizant agency for
indirect costs acting on behalf of all affected Federal agencies,
will, as necessary, conduct negotiations with the state public
assistance agency and will inform the state agency of the action
taken on the plan or plan amendment.
E. Review of Implementation of Approved Plans
1. Since public assistance cost allocation plans are of a
narrative nature, the review during the plan approval process
consists of evaluating the appropriateness of the proposed
groupings of costs (cost centers) and the related allocation bases.
As such, the Federal Government needs some assurance that the cost
allocation plan has been implemented as approved. This is
accomplished by reviews by the Federal awarding agencies, single
audits, or audits conducted by the cognizant agency for indirect
costs.
2. Where inappropriate charges affecting more than one Federal
awarding agency are identified, the cognizant HHS cost negotiation
office will be advised and will take the lead in resolving the
issue(s) as provided for in Subpart E of 45 CFR part 95.
3. If a dispute arises in the negotiation of a plan or from a
disallowance involving two or more Federal awarding agencies, the
dispute must be resolved in accordance with the appeals procedures
set out in 45 CFR part 16. Disputes involving only one Federal
awarding agency will be resolved in accordance with the Federal
awarding agency's appeal process.
4. To the extent that problems are encountered among the Federal
awarding agencies or governmental units in connection with the
negotiation and approval process, the Office of Management and
Budget will lend assistance, as required, to resolve such problems
in a timely manner.
F. Unallowable Costs
Claims developed under approved cost allocation plans will be
based on allowable costs as identified in this Part. Where
unallowable costs have been claimed and reimbursed, they will be
refunded to the program that reimbursed the unallowable cost using
one of the following methods: (a) A cash refund, (b) offset to a
subsequent claim, or (c) credits to the amounts charged to
individual Federal awards. Cash refunds, offsets, and credits may
include at the option of the cognizant agency for indirect cost,
earned or imputed interest from the date of expenditure and
delinquent debt interest, if applicable, chargeable in accordance
with applicable cognizant agency for indirect cost claims
collection regulations.