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AI- 2943   12. B. 4.    
BOC Regular
Meeting Date: 08/01/2019  
MGT Cost Allocation Plan - Health Department
FROM: Megan Banning, Finance
Department: Finance  

Information
RESOLUTION:
Resolved the Calhoun County Board of Commissioners does hereby accept the proposal by MGT of America Consulting, LLC (MGT) to prepare a Cost Allocation Plan for the Calhoun County Public Health Department as presented.
RECOMMENDATION:
The Calhoun County Public Health Department Administration and the Calhoun County Board of Health recommend that the County Board of Commissioners authorize the County Administrator/Controller to sign a contract with MGT of America Consulting, LLC on behalf of the County to prepare a Health Department Cost Allocation Plan at a cost not to exceed $9,500.
BACKGROUND:
Calhoun County has been working with MGT of America Consulting, LLC (MGT) for several years on the preparation of the County annual Cost Allocation Plan used for grant reporting and recapturing of overhead costs through grants.  The attached proposal is for the same process to be applied at the departmental level for the Calhoun County Public Health Department (CCPHD). 

Over 50% of the funding for the CCPHD is through grants at the Federal, State and local levels.  Current practice for recovering overhead costs at the Grant level for the CCPHD is to spread Administrative costs based on percentage of salary and fringe in each department.  The choice to move forward with a departmental Cost Allocation Plan is to ensure that all administrative costs are being captured and are being spread equitably amongst the grants to prevent any grant audit findings that may find our current administrative allocation unacceptable.

Similar to the County Cost Allocation Plan process, MGT will work with the CCPHD to identify all administrative costs and direct program costs and services, allocate countywide overhead costs and CCPHD admin costs to each program equitably based on a variety of factors, and present a Cost Allocation Plan for use in budgeting and charging grants.  The CCPHD will have the opportunity to update annually to ensure that all prior year costs were captured and that no programs were overcharged throughout the year.
ALTERNATIVES:
The Board of Commissioners could choose not to approve the proposal by MGT, this would not allow the CCPHD to move forward with the Cost Allocation Plan and they would continue to charge administrative costs to grants using the current methodology, potentially losing reimbursement revenue for uncaptured administrative costs.
SUMMARY:
Calhoun County Public Health Administration and the Calhoun County Board of Health propose that the Board of Commissioners accept the above recommendation to authorize the County Administrator/Controller to sign a contract with MGT to move forward the Health Department Cost Allocation Plan as presented.

Fiscal Impact
BUDGETARY IMPACT:
Total cost of the CCPHD Cost Allocation Plan is $9,500. This will be 100% funded with Health Fund Fund Balance.
Attachments
CCPHD CAP Proposal

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