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$ 1,408,626 = 32.8 % <br />4,290,610 <br />The City recovers indirect costs by multipying the direct costs by this <br />calculated rate to attain Total Cost Recovery. If the indirect costs were <br />not reimbursed, the City's General Fund would subsidize the other services <br />being provided. <br />This process of allocating and reimbursing for indirect costs is used by <br />almost every city in the country. The process used, the Central Service Cost <br />Allocation Plan, conforms with the Federal cost guidelines promulgated by FMC <br />74 -4 and OSAC 10. Furthermore, the Federal government reviews this plan on <br />an annual basis for appropriateness. <br />