Supervisors approve FY27 cost-allocation report to pursue social-services recoveries

Louisa County supervisors voted to review and sign the fiscal year 2027 cost-allocation report after a presentation from a consulting team that helps counties allocate indirect costs and claim reimbursements from the state.

The presenters told the board the cost-allocation plan divides indirect expenses—such as auditor and building operational costs—across departments to generate reimbursements for the local Health and Human Services office. "You receive a reimbursement back from the state for the expenditures that are allocated to that social services department," the presenter said, explaining the quarterly LAE (local administrative expense) report process.

Roger, who worked on the county's plan, said the firm identified "just over $40,000" in recoverable costs and that the federal share typically runs about one-third: "so that would be just around $13,000 or so," he said. Board members questioned the fee and contract timing; presenters said three-year contract periods are typical and they do not anticipate a fee increase for the next contract cycle.

Committee member (S1) moved to review and sign the FY27 cost-allocation report; the motion was seconded and carried. Presenters said a new three‑year contract would be issued in the coming months and encouraged supervisors to raise questions at that time.

Why it matters: Recovering indirect costs can return county funds used to support social-services operations. Supervisors said the recovery can be straightforward but requires a compliant cost plan under federal regulations.

What’s next: The board authorized the report review and indicated staff will receive the forthcoming contract for the next three-year period once it is issued.