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THE INDIRECT COST RECOVERY PROGRAM FOR COUNTIES AND CITIES Many cities and co un~ies are aware of an opportunity for recovering expenditures which support the administration of Federal programs. This opportunity arises from the publication el a Federal Management Circular, 74-4 (formerly OMB A-87) which provides for the reimbursement to local governments over and above what they are currently receiving from Federal grants and contracts. 'FMC 74-4 Each local government spends considerable dollars to provide such services to operating departments as data processing, purchasing, personnel, legal services, etc. FMC 74-4 provides a costing methodology which, if carefully followed, results in a more comprehensive identification of these coats and the benefits they provide to operating departments. If these other departments administer Federal programs, and these programs benefit from the services provided to the departments, then the Federal government may pay their fair share of the local government's cost of providing these serwces. Many cities an'd counties are currently developing such plans and will recover substantial sums of money due them. For example, the Department of Health, Education and Welfare has agreed to a policy of paying the Federal participation in these funds to the local governments if they prepare the required .elan. Many of these will select lhe services of David M. Griffith and Associates, Ltd., a firm which specializes in the preparation of these plans. SERVICES PROVIDED BY DMG and ASSOCIATES This Firm is retained to complete the following tasks for each local 9overnment. · Prepare the initial plan or updale an existing one. · Negotiate its approval with Federal and State authorilies. · Assist in preparing the reimbursement claims. · Monitor recoveries during the initial year. FEE ARRANGEMENTS All cities and counties are given a not-to-exceed fee for this Firm's professional services. Furtherm ore, the Firm 9uaran tees approval of the plan by all representatives at the Stale and Federal levels. Finally, their fees are contingent upon your recoveries exceeding the costs of their services. Depending upon the size of the local government, fees would range from $4,000 to ~25,000 for all services provided by the plan. ENDORSEMENTS · The Counly Commissioners Association el Ohio · The Association of Indiana Counties · The.Association of Minnesota Counties · The Minnesota Department el Public Welfare o The Wisconsin County Boards Association · The Association et Virginia Counties · The Iowa Association et Counties ,,~ =~"~,~, ,,~-.~'~'~'~'"~ ~:',.-.~ -.~ ~.,'"'~ ....... '~'~.> DAVIDM. GRIFFITH AND ASSOCIATES, LTD. · -~:~-¢.-.-'_~' ~ .:.: .~,~¢ ~.~,,~¢/~.¢. Accounting Specialists lo Government I