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2. Each local government that has been designated as a "major local government" by the Office <br />of Management and Budget (OMB) is also required to submit a plan to its cognizant agency <br />annually. OMB periodically lists major local governments in the Federal Register. <br />3. All other local governments claiming central service costs must develop a plan in accordance <br />with the requirements described in this Circular and maintain the plan and related supporting <br />documentation for audit. These local governments are not required to submit their plans for <br />Federal approval unless they are specifically requested to do so by the cognizant agency. Where <br />a local government only receives funds as a sub-recipient, the primary recipient will be <br />responsible for negotiating indirect cost rates and/or monitoring the sub-recipient's plan. <br />4. All central service cost allocation plans will be prepared and, when required, submitted within <br />six months prior to the beginning of each of the governmental unit's fiscal years in which it <br />proposes to claim central service costs. Extensions may be granted by the cognizant agency on a <br />case-by-case basis. <br />E. Documentation Requirements for Submitted Plans. The documentation requirements <br />described in this section may be modified, expanded, or reduced by the cognizant agency on a <br />case-by-case basis. For example, the requirements may be reduced for those central services <br />which have little or no impact on Federal awards. Conversely, if a review of a plan indicates that <br />certain additional information is needed, and will likely be needed in future years, it may be <br />routinely requested in future plan submissions. Items marked with an asterisk (*) should be <br />submitted only once; subsequent plans should merely indicate any changes since the last plan. <br />1. General. All proposed plans must be accompanied by the following: an organization chart <br />sufficiently detailed to show operations including the central service activities of the State/local <br />government whether or not they are shown as benefiting from central service functions; a copy <br />of the Comprehensive Annual Financial Report (or a copy of the Executive Budget if budgeted <br />costs are being proposed) to support the allowable costs of each central service activity included <br />in the plan; and, a certification (see subsection 4.) that the plan was prepared in accordance with <br />this Circular, contains only allowable costs, and was prepared in a manner that treated similar <br />costs consistently among the various Federal awards and between Federal and non-Federal <br />awards/activities. <br />2. Allocated central services. For each allocated central service, the plan must also include the <br />following: a brief description of the service*, an identification of the unit rendering the service <br />and the operating agencies receiving the service, the items of expense included in the cost of the <br />service, the method used to distribute the cost of the service to benefitted agencies, and a <br />summary schedule showing the allocation of each service to the specific benefitted <br />agencies. If any self-insurance funds or fringe benefits costs are treated as allocated (rather than <br />billed) central services, documentation discussed in subsections 3.b. and c. shall also be <br />included. <br />3. Billed services. <br />43 <br /> <br />