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Division of Cost Determination — Office of Acquisition Management Services

Guidance on Indirect Costs for State/Local Governments

Based on the cost principles established in OMB Circular A-87, State and local organizations may support the indirect costs that they incurred by submitting an Indirect Cost Rate (ICR) proposal or a Cost Allocation Plan (CAP) to their Federal cognizant agency. The proposals should be submitted no later than six months after the end of the entities fiscal year. If DOL provides the preponderance of funds to the organization, DOL would normally be cognizant. The Division of Cost Determination is responsible for the review and approval of the proposals submitted to DOL.

The proposals must be supported using the documentation cited below (as appropriate). Sample exhibits, for requested workpapers, Cost Policy Statement, and Certificate of Indirect Costs (CAP uses the same format) are available for the ICR. Also available are sample documents for the Cost Policy Statement and the Certificate of Indirect Costs. In addition, there is a link for the HHS ASMB C-10 – implementation guide for OMB Circular A-87, as well as a link for A-87 cost principles.

State Workforce Agencies (SWAs) — Checklists

All State/Local Governments organizations except SWAs — Checklists

Sample Exhibits to support an ICR (PDF)
Cost Policy Statement* (PDF)
Certificate of Indirect Costs* (PDF)
Certificate of Cost Allocation Plan* (PDF)
HHS – Implementation Guide — Circular A-87 (PDF)
OMB Circular A-87 — Cost Principles for State/Local Governments

*Applicable to state/local governments