8755 STATEWIDE COST ALLOCATION PLAN (SWCAP)
(Revised 2/99)
The SWCAP, like Pro Rata, is a "fair share" distribution of central service costs. SWCAP includes only those central services costs which are allowable for federal reimbursement purposes.
In the fall of each year, the FSCU prepares California's SWCAP for the ensuing fiscal year. FSCU sends the SWCAP to the federal Department of Health and Human Services (DHHS) for approval. The DHHS approval authorizes state departments to include SWCAP in their charges for work performed under federal grants and contracts.
The methods used to apportion the SWCAP costs to departments are identical to those used to apportion Pro Rata central service costs.
8755.1 DEPARTMENTAL PROCESS
(Revised 2/99)
Each department receiving federal funds has the responsibility to:
- File an Indirect Cost Rate Proposal (ICRP) with the federal government. First send, the ICRP to the DOF, FSCU, for review and approval. SAM Section 8755.2 discusses ICRPs in detail.
- Recover full costs (including SWCAP costs).
- Transfer SWCAP recoveries to the General Fund.
8755.2 INDIRECT COST RATE RECOVERIES
(Revised 2/99)
An ICRP establishes the basis by which the department recovers full costs associated with programs/activities. Non-CALSTARS departments may substitute Cost Allocation Plans (CAPs) for ICRPs with the approval of the federal government. SAM Section 8756 describes these processes in more detail. Departments will send their ICRPs or CAPs (non-CALSTARS) to FSCU for review and approval prior to sending them to the cognizant federal agencies for approval. Federal agency cognizance is usually assigned to that agency which grants the most federal funds to the state department.
To further the State's full cost recovery objective, GC Sections 13332.01–13332.02, require departments to recover SWCAP costs from the federal government and to transfer the SWCAP recoveries to the General Fund within 30 days after the end of each quarter. It is important that departments prepare ICRPs annually and be familiar with all aspects of full cost recoveries and the transfers of SWCAP recoveries to the General Fund.
Departments will request the SCO to transfer SWCAP recoveries. The transfer request will contain the following:
SWCAP amount to be transferred.
Time period the recovery spans.
Account the recovery is to come from.
Total budgeted SWCAP recoveries for the current fiscal year.
Total SWCAP recoveries transferred to date for the current fiscal year.
Total SWCAP recoveries to be transferred by current fiscal year-end.
Total SWCAP recoveries transferred for prior fiscal year.
Person (e-mail address and phone number) to contact if there are any questions.
In addition, the request must contain a certification that the transfer is accurate and in accordance with the department's approved cost recovery plan. The certification must be signed by the departmental accounting office manager. The original and two copies of the transfer request must be sent to the DOF budget analyst for approval. After approval, the DOF budget analyst will forward the original copy of the request to the SCO. A copy of the approved request is forwarded to FSCU. Agencies using form CA 504 (Office of the State Controller, Transaction Request) must still include the above information. See 8755.2 ILLUSTRATION for sample transfer request.
M E M O R A N D U M
DATE: January 29, 1999
TO: STATE CONTROLLER'S OFFICE
DIVISION OF ACCOUNTING AND REPORTING
FROM: DEPARTMENT OF ALCOHOL AND DRUG PROGRAMS
SUBJECT: STATEWIDE INDIRECT COST RECOVERIES
In accordance with our approved Indirect Cost Rate Proposal, we have collected $30,750 from the federal government for the quarter ending December 31, 1998 for SWCAP costs for the fiscal year 1998-99. These recoveries are based on a provisional rate and are subject to adjustment upon approval of a fiscal rate.
DEBIT: Alcohol and Other Drug Services Program
890000-4200-96-0001-15 $30,750
CREDIT: General Fund
Statewide Indirect Cost Recoveries $30,750
The departmental summary of statewide indirect cost recoveries is as follows:
- Total budgeted SWCAP recoveries for 1998-99 $123,000
- SWCAP recoveries transferred to date (1998-99) $ 61,000
- Total 1998-99 SWCAP recoveries to be transferred by June 30, 1999 $123,000
- Total 1997-98 SWCAP recoveries transferred by June 30, 1998 $100,000
I hereby certify under penalty of perjury that this transfer request reflects true and correct amounts in accordance with our approved indirect cost rate.
If you have any questions, please call Jane Doe at (916) 445-1111 or e-mail (Jane.Doe@DADP.ca.gov).
Department of Finance Approval
BY: __________________________
Title: _________________________
Date: _________________________
cc: Department of Finance, FSCU, Pro Rata/SWCAP Analyst
