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Spokane Valley launches internal indirect‑cost allocation study to recover more grant overhead
Summary
Council heard that the city is working with a consultant to develop an indirect‑cost allocation plan and federally acceptable indirect‑cost rate; staff aims to present findings at a June budget workshop and use the results to recover more administrative costs from grants and improve budgeting transparency.
City finance and administrative staff told the council on Oct. 23 that the city has begun an internal indirect‑cost allocation study with a consultant. The work will identify administrative and internal service cost centers, set allocation bases and produce an indirect‑cost rate that can be used for budgeting and to recover federal grant overhead.
Why it matters: staff said the new allocation plan will help the city recover eligible overhead on federal grants (a practice the city has not historically maximized) and will increase transparency about how central administrative costs are apportioned across departments.
Staff said the intent is to complete the consultant work and provide a presentation at the June 10 budget workshop. The study will produce annual update options, either maintained in‑house or with consultant support, depending on the final model’s complexity.
Council members welcomed the work and noted that a better internal allocation model would clarify comparisons with the county’s indirect‑cost process and strengthen the city’s position in intergovernmental negotiations.
