WASHOE COUNTY COST ALLOCATION PLAN AND FIXED INDIRECT COST RATE
Indirect Cost Allocation Plan (ICAP)
It is the intention of Washoe County to recover indirect costs at all opportunities. In support of departments' efforts to do so, the Budget Department procures a Cost Allocation Plan and Fixed Indirect Cost Rate report on an annual basis. Access our Frequently Asked Questions page for more information.
On February 14, 2012 the Board of County Commissioners adopted a policy to require all funds and entities be charged for their portion of allocated central service overhead costs, with a three year implementation plan, for various departments and funds to work toward fiscal sustainability while including the appropriate overhead charge, without additional General Fund subsidy. The implementation strategy for the first year was approved by the Board on April 24, 2012.
Indirect costs benefit all programs, departments and services provided by local government operations. Indirect costs are a bona fide cost of providing services, and as such need to be accounted for when determining fees, charges for services, or determining the cost of providing grant or other funded programs or activities. Indirect costs are just as tangible as direct costs when accounting for the total costs of providing services.
The following reports are prepared to establish cost allocations of allowable costs and are prepared in accordance with the requirements of Federal Circular A-87, "Cost Principles for State and Local Governments" and the Federal awards to which they apply. Washoe County utilizes the Federal recommended methodology for our cost allocation process, so that we are using an acceptable methodology for requesting Federal and other grant reimbursements, where allowable.