The Statewide Cost Allocation Plan (SWCAP) identifies and allocates costs the state incurs for "central services" provided by specific agencies or cost centers to other state agencies.
The SWCAP process falls under the federal guidelines contained in the Office of Management and Budget (OMB) Uniform Guidance (UG) under 2 CFR Part 200. The UG establishes principles and standards for determining costs for Federal awards carried out through grants, cost reimbursement contracts and other agreements with the State.
The guidelines found in the UG define the allowable and unallowable central service costs. For Kansas, the allowed central service costs are from programs and/or activity within the Department of Administration and the State Treasurer. The Kansas central service costs are categorized into two components or sections (Section I and Section II). Section I is the allocation of non-billed allowable indirect costs. Section II is the documentation of direct billed services' costs. The UG also require the preparation of formal GAAP-based financial statements for Section II (direct billed) cost centers. These are prepared annually and are audited and approved through the formal audit process conducted by Department of Health and Human Services (HHS).