The purpose of the Indirect Cost Allocation Plan (“Plan”) is to ensure that the City of Tigard has a basis for allocating direct and indirect costs, operating costs, equipment repair and replacement costs, comprehensive overhead rates and internal service fund charges; and is accurately accounting for the true cost of providing various services by and to each department. This Plan will identify eligible costs and develop a methodology to allocate them to benefiting activities, in such a way that facilitates budget predictability, smooths year-toyear volatility and fully funds services provided. Additionally, best practices accounting standards and OMB 2 CFR Part 225 make it necessary for the City to maintain a well-documented cost allocation plan that will help it to appropriately allocate general, administrative and internal service costs in its budget; property identify overhead rates that can be used in the calculation of billable hourly rates for federal and state grants, user fees, and reimbursements from other governmental agencies and from other benefiting City funds and activities.
