Consultant presents indirect‑cost recovery plan, explains 2 CFR 200 methodology

Tom Hollick of Maximus presented the county’s annual indirect‑cost plan and explained how the Schedule A number functions as a revenue source to recover general‑fund support for central services.

Hollick (Speaker 8) said the plan follows federal guidance (formerly OMB circular A‑87, now 2 CFR 200) and uses prior‑year expense data to calculate allowable indirect costs. He walked commissioners through how various central‑service costs (building capital, utilities, property insurance, maintenance) are allocated across grantee departments and noted that JFS divisions typically bear the largest share of indirect cost in most counties; he provided an estimated figure of roughly $273,000 in total billings across JFS divisions with approximately $205,000 coming from PA shared in the draft 2024 plan used for 2026 recovery.

Hollick offered to provide the supporting work papers and to help draft memo bills or rental‑rate language for lease agreements if the county wants to capture additional space costs. Commissioners asked clarifying questions about billing mechanisms, lease arrangements for privately leased office space and how roll‑forward adjustments for JFS operate. Hollick said he would finalize the draft and follow up with detailed schedules and contact points.

Next steps: Maximus will provide final draft schedules, underlying work papers and optional memo bills for the commissioners and the auditor’s office to review.