United States Department of Health & Human Services

Office of the Assistant Secretary for Administration and Management

Program Support Center

PSC Home

Financial Management

Cost Allocation Services

Background & Scope

BACKGROUND:

Cost Allocation Services (CAS) 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. CAS performs this function from four field offices and a staff of forty three. On average, CAS negotiates and issues 3,000 Rate Agreements annually. In addition to the aforementioned negotiations, CAS is responsible for resolving audits that involve indirect costs and cost allocation issues and methodologies, and provides technical assistance and guidance to both Federal departments and agencies and the grantee community.

The CAS 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 Institutions of Higher Education; State, Local, and Indian Tribal Governments; and Non-Profit Organizations. Cost Principles for these types of non-Federal entities are contained in Title 2 of the Code of Federal Regulations (CFR), Part 200 and Title 45 of the CFR, Part 75. This website also contains information concerning the applicable Cost Principles for Hospitals, located in 45 CFR 75, Appendix IX. In addition, CAS Best Practices Manuals and other supplemental guidance are provided.

 

Last revised: June 21, 2017

 

PSC Home | Products and Services | PSC FOIA Office | Contact PSC

HHS Home | Questions? | Contact HHS | Site Map | Accessibility | Privacy Policy | Freedom of Information Act | Disclaimers

The White House | USA.gov