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Can the counties and local governments claim the half percent for their administrative costs related to ARRA activities?

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Can the counties and local governments claim the half percent for their administrative costs related to ARRA activities?

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While the OMB memorandum only mentions State grantees, counties and local governments receiving Recovery Act funds directly can use the same methodologies described in the memorandum to recover administrative costs related to carrying out Recovery Act programs. Therefore, counties and local governments can include budgeted or estimated costs related to the administration of the Recovery Act in its Cost Allocation Plan (prepared in accordance with OMB Circular A-87, Cost principles for State, Local and Indian Tribal Governments) to recoup these costs on a more timely basis. The budgeted or estimated cost amount should not be in excess of .5 percent of total Recovery Act funds received directly by the county or local government (excluding pass-through Recovery Act funds received from the State). The local governments should prepare their proposals and keep them on file, unless their cognizant agency specifically requests submission of the proposal.

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A. While the OMB memorandum only mentions State grantees, counties and local governments receiving Recovery Act funds directly can use the same methodologies described in the memorandum to recover administrative costs related to carrying out Recovery Act programs. Therefore, counties and local governments can include budgeted or estimated costs related to the administration of the Recovery Act in its Cost Allocation Plan (prepared in accordance with OMB Circular A-87, Cost principles for State, Local and Indian Tribal Governments) to recoup these costs on a more timely basis. The budgeted or estimated cost amount should not be in excess of .5 percent of total Recovery Act funds received directly by the county or local government (excluding pass-through Recovery Act funds received from the State). The local governments should prepare their proposals and keep them on file, unless their cognizant agency specifically requests submission of the proposal.

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