The U.S. Office of Management and Budget (OMB) requires each state to develop and submit a yearly Statewide Cost Allocation Plan (SWCAP) as authorized by federal regulations in the Uniform Guidance (2 CFR Part 200). The Uniform Guidance establishes principles and standards for determining costs for federal awards carried out through grants, cost reimbursement contracts, and other agreements with state and local governments and federally recognized Indian tribal governments.
The Office of the Controller, Office of Statewide Accounting Services, Financial Reporting Branch prepares and submits the SWCAP to the federal Department of Health and Human Services, Division of Cost Allocation (DCA), annually. The SWCAP is a statistical method of allocating central government indirect costs to the state agencies that receive central government supportive services. The SWCAP also includes financial and billing information for billed central services directly charged to agencies or programs through internal service funds.
The SWCAP is reviewed and approved by DCA and remains in effect for a single state fiscal year period.