PUBLIC ASSISTANCE COST ALLOCATION PLANS
TABLE OF CONTENTS
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 Attachment extends these requirements to all Federal
agencies whose programs are administered by a State public assistance agency.
Major federally-financed programs typically administered by State public
assistance agencies include: Aid to Families with Dependent Children,
Medicaid, Food Stamps, Child Support Enforcement, Adoption Assistance and
Foster Care, and Social Services Block Grant.
B. Definitions.
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
Attachment (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.
E. Review of Implementation of Approved Plans.
F. Unallowable Costs. Claims developed under approved cost allocation
plans will be based on allowable costs as identified in this Circular. 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 awards.