INDIRECT COSTS

Jacksonville Ordinance Code tit. V, ch. 106, pt. 8

in effect

Jacksonville Ordinance Code § 106.801 Objectives.

Sec. 106.801. - Objectives. It is hereby determined and declared to be the intention of the City to participate in an effort of the federal government to more efficiently administer City programs in order to provide greater uniformity in costing procedures and in reimbursement practices. The federal government has established a system whereby a designated federal department acts for all federal departments in approving certain State and local costs associated with the performance of federally-supported programs and projects. The system removes restrictions that had formerly been prevalent in cost reimbursement policies providing, except where otherwise restricted, that: (a) All indirect costs of a State or local department or unit performing a grant or contract are allowable provided such costs are necessary for the efficient administration of the grant or contract. (b) A necessary cost of a grant program is allocable regardless of where it is incurred within the State or local government. (c) All costs of services provided by central-service type agencies to departments or units performing federal grants or contracts are allowable regardless of whether there is an actual transfer of funds between the agencies involved. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Jacksonville Ordinance Code § 106.802 Definitions.

Sec. 106.802. - Definitions. As used in this Part: (a) Federal cognizant agency means the federal agency charged by the federal Office of Management and Budget with the authority for approving indirect cost allocation plans, which approval shall constitute approval by all federal agencies of such plans. (b) Operating departments and activities means City operational units and subunits that perform direct services for costs incurred, such costs to include amounts allocated as indirect costs. (c) Using departments and activities mean City units and subunits which request and receive services performed by operating departments and activities. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Jacksonville Ordinance Code § 106.803 Scope.

Sec. 106.803. - Scope. The provisions of this Part shall apply to the operating departments and activities of the City in connection with identifiable indirect costs necessarily incurred in the administration of federal grants and contracts pursuant to such grants and to City operating departments and activities authorized to allocate and recover indirect costs for services performed not in connection with the administration of federal grants. The provisions of this Part shall not apply to any allocation and recovery of indirect costs by independent agencies, as any such allocation and recovery methods are authorized solely by applicable statutory provisions. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Jacksonville Ordinance Code § 106.804 Indirect costs allocation methodology authorized.

Sec. 106.804. - Indirect costs allocation methodology authorized. The indirect costs allocation methodology is adopted as the recognized mechanism whereby operating agencies and activities of the City can allocate indirect costs incurred in connection with the administration of City programs and can recover those incurred indirect costs from using agencies and activities. In the City's administration of federally funded grant programs, the indirect costs allocation methodology is adopted in accordance with Federal Management Circular 74-4 and in accordance with the allocation and reimbursement methodologies applied to the City in its indirect cost allocation plan for the administration of federal grants. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Jacksonville Ordinance Code § 106.805 Cost allocation plan preparation.

Sec. 106.805. - Cost allocation plan preparation. The Director of Finance and Administration is authorized to prepare on behalf of the City an indirect costs allocation plan in the form required by the federal Office of Management and Budget in Federal Management Circular 74-4 and to file a copy of such plan with the Council Secretary. The Director of Finance and Administration is authorized to prepare and submit such future indirect costs allocation plans as are necessary to recover indirect costs of operating departments incurred in the administration of federal grants in any City fiscal year and to file a copy of such plan with the Council Secretary. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Jacksonville Ordinance Code § 106.806 Negotiation agreement.

Sec. 106.806. - Negotiation agreement. The Mayor and Corporation Secretary are authorized to execute a negotiation agreement between the United States and the City in the form prescribed by the federal cognizant agency, which agreement shall constitute formal approval and acceptance of the indirect cost allocation plan submitted by the City. The authority granted to the Mayor and Corporation Secretary in this Section shall continue from year to year. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Jacksonville Ordinance Code § 106.807 Indirect cost allocation plan implementation.

Sec. 106.807. - Indirect cost allocation plan implementation. The Director of Finance and Administration is authorized to implement the indirect cost allocation plan after submission to and approval of the federal cognizant agency in accordance with Federal Management Circular 74-4. The Director shall identify and describe all types of services provided by operating departments and activities in connection with the administration of federally-funded grant programs. Based upon such services provided, the Director shall allocate all indirect costs incurred by operating departments and activities to specific grant programs and shall provide for methods of reimbursement of such operating agencies and activities by using departments and activities. The using department or activity shall, upon the direction and approval of the Director, reimburse the operating department or activity for indirect costs incurred. Upon the failure of the using agency or activity to provide reimbursement, the Director is authorized to transfer such reimbursable amounts from the using department or activity to the operating department or activity, subject to the approval of the Mayor. Each appropriation of federal grant funds shall contain a specific appropriation of the indirect costs necessary to administer the grant program. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Jacksonville Ordinance Code § 106.808 Limitations.

Sec. 106.808. - Limitations. The City's indirect costs allocation plan as it relates to the administration of federally-funded City programs shall be applicable to City operating departments and activities but shall not be applicable to the independent agencies. When the maximum amount of costs allowable by law is less than the maximum for a grant program amount allowable by the City's allocation plan, the difference may neither be recovered by that grant program nor shifted to other federally-funded programs. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1)

Jacksonville Ordinance Code § 106.809 Agencies authorized to allocate indirect costs; allowable indirect costs; consistent application of accounting principles.

Sec. 106.809. - Agencies authorized to allocate indirect costs; allowable indirect costs; consistent application of accounting principles. (a) City operating departments and activities which perform services either at the request of City using agencies and activities or by operation of law are authorized to allocate and recover direct and indirect costs associated with the performance of such services from such using departments and activities. Direct costs shall be allocated to operating departments and activities in accordance with costing principles accepted by the Director of Finance and Administration. Indirect costs shall be allocated to operating departments and activities and shall be reimbursed to such operating departments and activities by the using agency or activity. (b) Allowable indirect costs shall include the following costs: (1) Accounting costs. (2) Advertising costs. (3) Advisory boards and councils. (4) Audit services. (5) Automatic data processing. (6) Bonding. (7) Budgeting costs. (8) Building lease management. (9) Building space and related facilities. (10) Capital expenditures. (11) Communications. (12) Compensation for personal services. (13) Depreciation and use allowances. (14) Disbursing and use allowance. (15) Employee fringe benefits. (16) Employee morale, health and welfare costs. (17) Exhibits. (18) Insurance and indemnification. (19) Legal expenses. (20) Maintenance and repairs. (21) Management studies. (22) Materials and supplies. (23) Memberships, subscriptions and professional activities. (24) Motor pools. (25) Payroll preparation. (26) Personnel administration. (27) Printing and reproduction. (28) Procurement service. (29) Professional services. (30) Proposal costs. (31) Supplies, equipment and materials. (32) Taxes. (33) Training and education. (34) Transportation. (35) Travel. (c) Such charges assessed using departments and activities as indirect costs shall be necessary and reasonable for the proper and efficient performance of services and shall not be a general expense to carry out the overall responsibility of the City. All indirect costs shall be accorded consistent treatment through the application of generally accepted accounting principles appropriate to the circumstances and shall constitute the net of all applicable credits. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Jacksonville Ordinance Code § 106.810 Nonfederal indirect cost allocation.

Sec. 106.810. - Nonfederal indirect cost allocation. (a) The Director shall prepare a nonfederal indirect cost allocation plan for City operating agencies and activities which shall reflect all agencies and activities authorized to assess and recover indirect costs incurred and included the assessment and recovery methods of such indirect costs and shall file a copy of such nonfederal indirect cost allocation plan with the Council Secretary. (b) The Director of Finance and Administration is authorized to implement the nonfederal indirect cost allocation plan based upon direct services provided by City operating departments and activities to City using departments and activities. The Director shall allocate all indirect costs incurred in the performance of direct services and provide for methods of reimbursement of such operating departments and activities by using departments and activities. The using department or activity shall, upon the direction and approval of the Director, reimburse the operating department or activity for indirect costs incurred. Upon the failure of a using department or activity to provide reimbursement, the Director is authorized to transfer such reimbursable amounts from the using department or activity to the operating department or activity, subject to the approval of the Mayor. Each City using department and activity that shall employ the direct services of a City operating department or activity shall include either in its fiscal year budget or in appropriations during the fiscal year a specific line item containing the indirect costs attributable to direct services provided for specific program administration. (c) The nonfederal indirect cost allocation plan prepared by the Director shall be applicable only to City operating and using departments and activities and shall not be applicable to independent agencies. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Jacksonville Ordinance Code § 106.811 Method of allocation.

Sec. 106.811. - Method of allocation. The Director of Finance and Administration shall develop rates applicable to the operating departments and activities for allocating indirect costs to be charged to using departments and activities associated with direct services rendered. Such rates shall be formulated by grouping the indirect costs of the operating department or activity into functional costs pools which shall be distributed to or divided among the units of such operating department or activity by means of a base which shall measure the relative degree of benefit which the operational units derived from the pool. The Director shall identify all activities and their attendant costs, incorporate those costs allocated to the operating department or activity, classify all activities performed and attendant costs as being either direct or indirect, eliminate all unallowable costs, classify the indirect costs which benefit subunits of the operating department or activity in significantly different proportions into functional cost pools, select the appropriate base for distribution of each classified pool to the benefitting departments and activities and calculate an indirect cost rate for each operating department or activity by relating the total indirect costs of each operating department or activity to that department's or activity's direct cost base. (Ord. 77-691-638, § 2; Ord. 83-591-400, § 1; Ord. 2016-140-E, § 16)

Source: City of Jacksonville, Ordinance Code and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/fl/jacksonville/codes/code_of_ordinances?nodeId=TITVADPE_CH106BUACCO_PT8INCOFetched: 10/27/2026