BACKGROUND:
The Division of Cost Allocation (DCA) is located within the
Department of Health and Human Services (HHS), Program Support Center (PSC). HHS
is designated by the Office of Management and Budget (OMB) as the cognizant
federal agency for reviewing and negotiating facility and administrative
(indirect) cost rates, fringe benefit rates, special rates as determined to be
appropriate, research patient care rates, statewide cost allocation plans and
public assistance cost allocation plans. These indirect cost rates and cost
allocation plans are used by grantee institutions to charge Federal programs for
administrative and facility costs associated with conducting Federal programs.
The DCA performs this function from four field offices and a staff of fifty two.
During the fiscal year 2011, the DCA completed over 2,800 negotiations. In
addition to the aforementioned negotiations, the DCA is responsible for resolving
audits that involve indirect costs and cost allocation issues and methodologies,
and providing technical assistance and guidance to both Federal departments and
agencies and the grantee community.
The DCA National Director acts as the Administrative Contracting Officer for
approving Disclosure Statements (DS-2) for those educational institutions where
HHS is designated by OMB as the cognizant Federal agency.
SCOPE:
This website contains information concerning the applicable Cost Principles for
Educational Institutions located in 2 CFR, Part 220, (OMB Circular A-21); Non-profit
Organizations located in 2 CFR, Part 230 (OMB Circular A-122); Hospitals located in
Appendix E of 45 CFR, Part 74; State, Local and Indian Tribal Governments located in
2 CFR, Part 225 (OMB Circular A-87); Uniform Administrative Requirements for Grants
and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations located in 2 CFR Part 215 (OMB Circular A-110); and DCA Best Practices
manuals and guides.
