5101:9-1-05 Allocation of shared costs.

(A) Shared costs are indirect costs incurred for a common purpose that benefit two or more major program areas or Ohio department of job and family services (ODJFS) acknowledged functions/programs and are not readily assignable, without effort disproportionate to the results achieved, to a specific program or specific program area cost pool. Costs designated as shared costs are placed in the shared cost pool.

(1) When employee activities benefit two or more major program areas, costs associated with that employee are reported in the shared cost pool. Examples of staff who are appropriately charged to the shared cost pool include the director, the director's immediate staff, and other staff who support the general administration of the agency, such as personnel, fiscal, security, or centralized purchasing, assuming the costs associated with those staff are not readily assignable to a specific program or program area cost pool. Staff categorized as shared do not participate in any ODJFS random moment sample (RMS) observations.

(2) Shared costs are identified in combined and stand alone county department of job and family services (CDJFS). Shared costs include local agency functions.

Administrative contract costs are included in the shared cost pool if they are not assignable to a particular program in accordance with relative benefits received. Examples of administrative contracts appropriately charged to a shared cost pool include, but are not limited to, building maintenance, human resource services, or any service that indirectly benefits more than one federal program operated by the local agency.

(B) Shared costs in the shared cost pool are allocated to the ODJFS cost categories in a two phase process:

(1) In the first phase, shared costs are allocated to individual program areas within the CDJFS, based on the average number of full-time equivalent (FTE) positions imported to ODJFS in the county finance information system (CFIS). The major program areas are income maintenance (IM), social services (SS), Workforce Investment Act (WIA), and/or child support (CS). Costs associated with WIA may be combined with IM or SS or may be considered a major program area if all workforce staff in a CDJFS work solely on workforce programs.

(2) In the second phase, shared costs are further distributed to various programs within each major program area.

(a) The IM portion of shared costs identified in phase one is added to the IM combined administrative costs to create an IM administrative cost pool. These costs are then distributed to the IM related programs based on percentages derived from the income maintenance random moment sample observations. In a CDJFS that does not have staff who work solely on WIA activities, the WIA portion of shared costs identified in phase one is added to the IM cost pool.

(b) Any SS portion of shared costs identified in phase one is added to the SS administrative costs to create a SS administrative cost pool. These costs are then distributed to the SS related programs based on percentages derived from the social services random moment sample observations. In a CDJFS that does not have staff who work solely on WIA activities, the WIA portion of shared costs identified in phase one is added to the SS cost pool.

(c) Any CS portion of shared costs identified in phase one is added to the CS administrative costs to create a CS administrative cost pool. Costs are distributed between Title IV-D and non-IV-D activities based on percentages derived from the quarterly results of the child support random moment sample observations. These costs are then distributed to the CS related programs based on percentages derived from the child support random moment sample observations.

(d) In a CDJFS with staff who work solely on WIA activities, the WIA portion of shared costs identified in phase one is added to the WIA administrative costs to create a WIA cost pool. These costs are then distributed to the WIA related programs based on percentages derived from the workforce random moment sample observations.

(C) ODJFS acknowledged CDJFS shared costs are paid from the public assistance (PA) fund. The individual CDJFS function/program funds shall reimburse the PA fund for the portion of the shared costs that is attributable to its major program areas, as identified through the process described in paragraph (B) of this rule. The transfer between funds shall be identified through the expenditure reporting process.

Effective: 06/11/2012
Promulgated Under: 111.15
Statutory Authority: 5101.02
Rule Amplifies: 329.04 , 5101.02
Prior Effective Dates: 1/1/86 (Emer), 4/1/86, 4/2/86 (Emer), 7/1/86, 1/10/87, 8/6/87, 4/21/88 (Emer), 7/1/88, 7/25/88, 7/8/89, 7/28/96, 6/15/98, 1/31/04, 1/13/09