Local Health Department Submission, Certification, Proposal & Assessment Checklist September 2014

1. CDPH Indirect Cost Rate Process Local Health Department Submission, Certification, Proposal & Assessment Checklist September 2014 Financial Management Branch, CDPH

2. Training Objectives • Provide an overview of new process for LHDs to submit their Indirect Cost Rate (ICR) including: • Submission, Certification & Proposal • LHD ICR Assessment, Checklist, and Crosswalk • Review Submission Requirements and Timeline • Review Available Resources 1 Financial Management Branch, CDPH

3. LHD ICR Submission Form Identifies: • Year that ICR proposal is for • 1. Submitted for use in FY: 20/ Based on the most recent independently audited financials for FY: 20/ • LHD Contact for questions 2. LHD Contact for ICR:First & Last Name: Title/Position: LHD Contact Email: @ LHD’s Contact Phone: 2 Financial Management Branch, CDPH

4. LHD ICR Submission Form Identifies ICR options • Personnel Services • Total Allowable Direct Costs 3. Identify the ICR methodology that the LHD will use for CDPH contracts, unless otherwise designated/ restricted by federal grant requirements. Select ONE method (EITHER A or B) from above (percentage MUST match ICR Worksheet): • A. Total Personnel Costs (Salaries, Wages & Fringe Benefits):      % ** OR ** • B. Total Allowable Direct Costs: % 3 Financial Management Branch, CDPH

5. LHD ICR Submission Form Certification of Proposal By filing this certification I have noticed that this information will be used by CDPH programs to verify the LHD's ICR. This rate will be used to approve the maximum ICR allowed by CDPH policy as indicated below, unless otherwise designated by State or Federal funding restrictions and/or requirements. I further certify that the costs used to calculate the ICR are based on the most recently available independently audited actual financials. • 25% cap for ICR calculated based on Total Personnel (Salaries, Wages and Fringe Benefits) • 15% cap for ICR calculated based on Total Allowable Direct Costs 4 Financial Management Branch, CDPH

6. LHD Auditor Certification Auditor Certification • Auditor Controller (or Designee): • ____________________________________________________________ • Print Name • ____________________________________________________________ • Title/Position • ____________________________________________________________ • Signature 5 Financial Management Branch, CDPH

7. ICR Checklist and Assessment Costs not listed • If in ICR or County Cost Allocation Plan • Add Direct to CDPH and in either ICR or CCAP • Requires Explanation/Justification • May be disallowed 6 Financial Management Branch, CDPH

8. ICR Checklist and Assessment If Charged Direct to CDPH • Explanation/Justification Required • Specify CDPH Program/Project(s) Charged “Direct” • Specify Different Circumstances 7 Financial Management Branch, CDPH

9. 2015/16 LHD ICR Proposal ICR Checklist and Assessment 8 Financial Management Branch, CDPH

10. 2015/16 LHD ICR Proposal ICR Schedule 9 Financial Management Branch, CDPH

11. 2015/16 LHD ICR Proposal ICR Crosswalk 10 Financial Management Branch, CDPH

12. 2015/16 LHD ICR Proposal ICR Crosswalk - Example 11 Financial Management Branch, CDPH

13. Submission Documents • LHD ICR Certification & Proposal (CDPH 2345) • Certification: Signatures Required, Page 1 • Proposal: Signatures Required, Page 3 • ICR Checklist and Assessment (Excel) • Signature Required • Additional Documentation • Countywide Cost Allocation Plan • ICR Summary Spreadsheet (See Sample) 12 Financial Management Branch, CDPH

14. Submission Timeline Electronically: CDPH-ICR-mailbox@cdph.ca.gov November 14, 2014: LHDs submit ICR Certification and Proposal 13 Financial Management Branch, CDPH

15. CDPH Timeline November 2014: CDPH reviews ICR Documents January 2015: CDPH posts each LHD ICR July 1, 2015: Posted ICR will be applied to all contracts, agreements and grants with July 1, 2014 start dates. 14 Financial Management Branch, CDPH

16. If LHD does not Submit • 2015/16 • State Fiscal Year (FY) 2015/16 LHD ICR capped at 15% of Total Personnel Costs • Salaries/Wages + Fringe Benefits • 2016/17 & Beyond • FY 2016/17 LHD ICR capped at 10% of Total Personnel Costs • Salaries, Wages & Fringe Benefits 15 Financial Management Branch, CDPH

17. Role of CDPH Contract Managers • Utilize approved ICR for each LHD agreement (from posting on website) • Review direct program budget to ensure that there is no overlap with items within the ICR; if there is overlap ensure that there is a legitimate reason. • Verify that the Indirect Rate for subcontracts is applied to the first $25,000 for each subcontract. 16 Financial Management Branch, CDPH

18. Role of CDPH Contract Managers • Programs should seek to understand: • How do budgeted items support the activities in the Scope of Work? • Where is the program housed? • What method is used to allocate and track the cost to an individual program? • Are there joint costs that benefit multiple programs? 17 Financial Management Branch, CDPH

19. Recap of Resources • CDPH Contract Bulletin 13-07 • Internal Certification of Indirect Cost Rate Proposal • Indirect Cost Rate Checklist & Assessment • FAQ on ICR Method • Sample Backup Documentation: ICR Summary • Questions: CDPH-ICR-mailbox@cdph.ca.gov 18 Financial Management Branch, CDPH

20. Questions? 19 Financial Management Branch, CDPH