FEDERAL COST RECOVERY – INDIRECT COST RATE/COST ALLOCATION RECOVERIES - 9216.1

(Revised and renumbered from 8755.2)

For state agencies/departments that receive federal funds, Government Code section 13332.01 and 13332.02 require the recovery of Statewide Cost Allocation Plan (SWCAP) costs from the federal government and to transfer the SWCAP recoveries to the General Fund (GF). In accordance with SAM section 9216, these transfers are due within 30 days after the end of each quarter. In order to meet this objective and substantiate recovery amounts, agencies/departments must first prepare an Indirect Cost Rate Proposal, a Cost Allocation Plan, or Public Assistance Cost Allocation Plan as prescribed in SAM section 9216.2.

To transfer SWCAP recoveries, agencies/departments are required to complete a Transaction Request (TR), form CA 504 and send it to the State Controller’s Office (SCO) for processing. The TR must include the quarterly SWCAP amount by fiscal year to be transferred and a brief explanation in the legal authority and reason for request section.