Statewide Cost Allocation Plans (SWCAP)
Which plan should I use?
Agencies preparing indirect cost rates which include central services should use the most recently approved (“FINAL”) SWCAP plan. Per 2 CFR 200 Appendix VII, Section D.1.d:
d. Indirect cost proposals must be developed (and, when required, submitted) within six months after the close of the governmental unit's fiscal year, unless an exception is approved by the cognizant agency for indirect costs. If the proposed central service cost allocation plan for the same period has not been approved by that time, the indirect cost proposal may be prepared including an amount for central services that is based on the latest federally-approved central service cost allocation plan. The difference between these central service amounts and the amounts ultimately approved will be compensated for by an adjustment in a subsequent period.
While the regulation uses the word “may” when describing use of the most recently approved plan, according to guidance the Administrative Services Division has received from our SWCAP Consultant, the alternative is to not include central services costs at all.