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Statewide Cost Allocation Plan (SWCAP)

The State of Vermont utilizes a Statewide Cost Allocation Plan (SWCAP), as authorized by federal regulations in the Uniform Guidance (2 CFR Part 200), to charge statewide indirect administrative costs to federal programs. The SWCAP permits the State to determine costs that are associated with the general administration of the State of Vermont and to allocate a portion of these costs to federal programs. These costs may be claimed as indirect administrative costs or used as a portion of the required matching state share.

The Department of Finance & Management, Financial Operations Division, prepares and submits the Statewide Cost Allocation Plan to the federal Department of Health and Human Services, Division of Cost Allocation (DCA), annually. The SWCAP is a statistical method of allocating central government costs to the state agencies that receive central government supportive services. The SWCAP is reviewed and approved by DCA and remains in effect for a single state fiscal year period.

Portions of the costs of the following state agencies are allocated within the SWCAP:
  • Finance & Management
  • State Treasurer
  • Buildings and General Services (BGS)
  • Human Resources
  • Secretary of Administration
In addition, it includes an allocation for the following costs:
  • Building Depreciation
  • Equipment Expenditures
The Uniform Guidance deems the following costs of State government to be unallowable and, as such, they are not included in the SWCAP:
  • Governor’s Office
  • State legislature
  • Judiciary Branch
The following mechanisms are used to allocate operating expenses of the central service agencies to the line agencies of state government.
  • Finance & Management: Budget Analysts’ hours worked
  • State Treasurer: Vouchers and Payroll checks processed
  • BGS-Purchasing: Purchase orders processed by purchasing agent
  • Human Resources: Average number of filled positions
  • Secretary of Administration: Average number of filled positions in the Agency
  • Building Depreciation: Square footage of state-owned buildings
  • Equipment Expenditures: Equipment depreciation and cost of non-depreciable equipment

Once approved by DCA, state agencies that receive federal grants may claim these costs as an indirect cost of managing federal programs. The costs may or may not be subject to further allocation within their own agency, per the terms of their own arrangement with DCA or other federal regulations.

Submitted/Still Under Review SWCAP Documents

2022 Exhibit A as Submitted

Approved SWCAP Documents

2021 Approval Letter                                                                                                      
2014 Exhibit
2015 Retirement Incentive Program

The State of Vermont implemented a Retirement Incentive Program in 2015 which encouraged eligible state employees to retire between October 1, 2015 and March 1, 2016 by issuing an incentive payment of up to $15,000 per employee.  In order to charge a portion of these payments to federal programs, a proposal was submitted to the U.S. Department of Health and Human Services' Division of Cost Allocation for their review and approval.  Approval was granted on January 14, 2016.