1226 Cost Allocation Plan (CAP)

The policy of the Georgia Department of Human Services (DHS) is to develop, document, publish and implement its Cost Allocation Plan (CAP) to assign costs to Federal awards and other benefiting programs.

The Office of Management and Budget’s Circular Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200. United States Department of Health and Human Services regulations applicable to public assistance agencies.

Electronic Code of Federal Regulations

This policy is applicable to all divisions and offices of DHS.

DHS Cost Allocation Plan is a detailed narrative of the methods and procedures utilized by the agency to allocate costs to various programs or grants.

The Director of the DHS Office of Financial Services (OFS) is responsible for issuing and updating the procedures to implement this policy.

DHS has published the Cost Allocation Plan since the creation of the department. Random Moment Sampling (RMS) has been utilized by DHS as a basis for the allocation of indirect costs since 1974. This is a new policy for inclusion in this publication.

The effectiveness of this policy is evaluated by the Georgia Department of Audits annually and by representatives of federal agencies as they perform financial management reviews.