Oversight of Intergovernmental Agreements by the United States
Marshals Service and the Office of the Federal Detention Trustee

Audit Report 07-26
March 2007
Office of the Inspector General


Appendix III
IGA-Related USMS Forms

The following pages contain examples of each form listed below.

U.S. Department of Justice
Marshals Service

COST SHEET FOR DETENTION SERVICES

SCHEDULE A

Instructions: This should be completed and submitted to the U.S. Marshal by the local government for the acquisition of detention services for federal prisoners. The cost information contained in this form will be reviewed by a representative from the U.S. Marshals Service Headquarters. Upon request, additional supporting data in addition to that included as part of this cost sheet may be requested. The individual designated in Section V will be contacted by a U.S. Marshals Service representative to negotiate a jail per them rate and its effective date. Upon completion of negotiations, and Intergovernmental Service Agreement (ICTA) will be issued by the U.S. Marshals Service Headquarters and forwarded to the local government for review and signature. Local Governments shall only request the reimbursement of costs to the extent provided for in the latest revision of OMB Circular No. A-87. OMB Circular No. A-87 sets forth the principles and standards for determining costs for federal awards carried out through agreements with state and local governments. If additional guidance is required, please contact U.S. Marshals Service Headquarters, Prisoner Services Division (202) 307-5100.

Section I - General Information

Name of Facility:________ Physical Address of Facility:________ (Phone Number:)________

Section II - Financial Data Summary

TOTAL OPERATING COST FOR JAIL:

A. Time Frame (Fiscal Year):

 

FROM (Month/Year): ......................................................

___________

TO (Month/Year): .........................................................

___________

ANNUAL COST
(Auto-calculated from figures on following pages)

B. Total Personnel Costs (Schedule B - Part I)...........................

___________

C. Total Personnel Benefits (Schedule B - Part II).......................

___________

D. Total Consultants and Contract Service (Schedule C)..............

___________

E. Other Direct Operating Costs (Schedule D)............................

___________

F. Indirect Costs (Schedule E)*..............................................

___________
*A certified cost allocation plan must be submitted if reimbursement for indirect costs is requested.

G. Equipment Depreciation Costs (Schedule F)............................

___________

H. Building Depreciation Costs (Schedule G)................................

___________

I. Total Operating Costs (Schedule B-G)....................................

___________

TOTAL ACTUAL OPERATING COST FOR PRIOR FISCAL YEAR.......

___________

Section III - Prisoner Population Information

Time frame of Prisoner Information FROM:   TO:  
(Must correspond with timeframe on previous page)       (Month/Year)   (Month/Year)

Inmate Capacity of Jail:

Male Female Juvenile Total
       
       

Average Daily Population:

  Type of Prisoner Male Female Juvenile TOTAL

Federal

         

Local

         

State

         
 

TOTAL

       

Section IV - Per Diem

Proposed Per Diem Rate for Federal Prisoners: $
State Prisoner Per Diem (if applicable): $

Section V - Local Government Contact

Please provide the name of the individual authorized to represent and to act for the Local Government in jail day rate negotiations.

Name

Department/Office

Title

Street

Phone ( ) FAX ( )

City

State

ZIP

Section VI - Certification Statement

This is to certify that, to the best of my knowledge and belief the date furnished in Schedules B through G are accurate, complete and current, and do not include any unallocable, or unallowable, or unallowable costs prohibited by OMB Circular No. A-87 (Cost Principles for State and Local Governments) or any cost not related to the jail facility as discussed on Form USM-243 (Cost Sheet for Detention Services). The records of this agency area available for review and audit by the authorized representative of the U.S. Government to verify any jail per diem rate negotiated.

Signature ___________________________ Date ________________________
Name ______________________________ Title ________________________


SCHEDULE B PART I –
PERSONNEL COSTS

Direct Costs-Personnel Supporting Detention

Facility Instructions: List only those positions directly involved in jail operations and benefiting federal prisoners.

Type of Position

(A) Annual Salary Cost $

(B) Full Time or Part Time

(C) Number of Positions

(D) Total Salary Cost (A) x (C) = (D) $

         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         

(Use continuation sheet if needed)

Total Salary Cost
FICA Benefits %
Total Salary Cost plus FICA
$
$
$


SCHEDULE B PART II -
PERSONNEL BENEFITS

Direct Costs-Personnel Supporting Detention Facility

Instructions: Provide name of retirement plans (i.e., N.Y.S. employees retirement system), insurance plans (i.e., Blue Cross/Blue Shield), or unemployment insurance contribution plans for positions listed in Schedule B - Part 1).

  Number of
Employees
Participating
Total Salary
Base
$
Employer
Contribution
Annual
Cost
$
1. RETIREMENT PROGRAM(S)
a. Full-time:   %  
b. Part-time:   %  
2. INSURANCE PROGRAM(S)
a. Name: Full-time:   %  
Part-time:   %  
b. Name: Full-time:   %  
Part-time:   %  
3. OTHER EMPLOYER CONTRIBUTION PLANS (i.e. unemployment, worker’s compensation)


SCHEDULE C
CONSULTANTS AND CONTRACT SERVICES

Instructions: List only those positions directly involved in jail operations and benefiting federal prisoners. Provide a detailed "description of service".

Type of Service Description of Service No. of
Contract
Employees
Annual Cost
$
1. MEDICAL:      
2. DENTAL:      
3. OTHER:      
4. OTHER:      
5. OTHER:      
Total Consultants and Contract Services $


SCHEDULE D - OTHER DIRECT JAIL OPERATING COSTS

Instructions: List only those costs associated with the operation of the jail that directly benefit federal prisoners. Costs associated with local court and law enforcement activities are not allowable costs for the purpose of determining facility operating costs.

Cost category

Description

Annual Cost $

Food & Kitchen Supplies

 

 

Clothing (Prisoner)

 

 

Medical Care Supplies

 

 

Bedding & Linens

 

 

Toiletries

 

 

Recreation and Education

 

 

Utilities

 

 

Uniforms (Jail Staff Only)

 

 

Safety & Sanitation

 

 

Maintenance Supplies

 

 

Office Supplies & Postage

 

 

Telephone & Communications

 

 

Equipment under $5,000 (Please use Schedule F for equipment over $5,000.)

 

 

Credits (e.g. telephone credits, insurance rebates, recoveries or indemnities on losses commissary income)

 

()

Other

 

 

Other

 

 

Other

 

 

Other

 

 

Total Other Direct Costs

   

CERTIFICATE OF COST ALLOCATION PLAN

This is to certify that I have reviewed the cost allocation plan submitted herewith and to the best of my knowledge and belief:

(1) All costs included in this proposal [identify date] to establish cost allocations or billings for [identify period covered by plan] are allowable in accordance with the requirements of OMB Circular A-87, ''Cost Principles for State and Local Governments,'' and the Federal award(s) to which the apply. Unallowable costs have been adjusted for in allocating costs as indicated in the cost allocation plan.

(2) All costs included in this proposal are properly allocable to Federal awards on the bases of a beneficial or casual relationship between the expenses incurred and the awards to which they are allocated in accordance with applicable requirements. Further, the same costs that have been treated as indirect costs have not been claimed as direct costs. Similar types of costs have been accounted for consistently.

I declare that the foregoing is true and correct.

Governmental Unit:

Signature:

Name of Official:

Title:

Date of Execution:


SCHEDULE E - COST ALLOCATION PLANS/INDIRECT COST PROPOSALS

Instructions: If you intend to claim central service costs you must provide a cost allocation plan. See OMB Circular A-87, Attachment C. Similarly, if you intend to claim indirect costs you must provide an indirect cost proposal. An indirect cost is any cost not directly identified with a single, final cost objective and is not subject to treatment as a direct cost. See OMB Circular A-87, Attachment E.

(A) Type of service Provided

(B) Organization Providing Service

(C) No. of Employees Involved

(D) Total Cost of Salaries and Benefits $

(E) % of Time Spent in Support of Jail Operations %

(F) Allowable Indirect Cost (D) x (E) = F $

           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

Total:

         


SCHEDULE F - EQUIPMENT COST

Instructions: A Listing of equipment which is in the current approved jail operating budget for this contract period may be provided and/or attached to this worksheet for full purchase value consideration. If equipment is depreciated, show total acquisition amount and method used by state, county or city in calculating depreciation. A use allowance not to exceed 6-2/3% of acquisition cost of usable equipment may be substituted in lieu of depreciation. Equipment must be used directly for jail operations. Treatment of these costs must be consistent with local government's method.

A. New Equipment Approved in Current Operating Budget (Use Continuation Sheet if Necessary)

(1) Item Description (2) Proposed Utilization (3) No. of Units (4) Cost per Units (5) Enter % of use by the jail (i.e, If equipment is used by several depts.) (6) Equipment Cost Allowable (4) x (5) x (6)
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  
        %  

Total Current Equipment Cost
Equipment Allowance (6-2/3% of above)

B. Show Method of Calculating Depreciation of Equipment if 6-2/3% depreciation is not used.

SCHEDULE G - BUILDING DEPRECIATION

Instructions: Provide an explanation of method used by state, county or city to depreciate buildings. Show date of construction-, cost of construction (cost of land/site is not allowable)-, number of years in depreciation cycle. Note that federal assistance revenues used for building construction are considered offsetting revenues and are to be subtracted from cost of construction. In lieu of building depreciation an annual use allowance of 2% of acquisition cost may be substituted. Treatment of these costs must be consistent with local government's method. If claiming debt service arising from construction or renovation of a facility, please specify in ''other'' below.

Part I - Depreciation Computation

Facility Main Building Addition(s) Annex Other (Please specify):





Year of Construction

Original Construction Cost

Annual Depreciation Claimed *

Subtotal Less Federal Assistance Revenues or Grants including awards under Cooperative Agreement Program Total




     

*Generally 2% of original construction cost

Part II - Method of calculating depreciation used by state, county or city (i.e., specify depreciation method if 2% depreciation allowance is not utilized by the state, county, or city)


INSTRUCTIONS FOR USM-243

USM-243: Cost Sheet for Detention Services

Information on how to fill out the form, download the form, and assist local detention facility officials in completing the form:

Click the links below to go to instructions for filling out Form USM-243:

Form USM-243:

SCHEDULE
A
SCHEDULE
B - Part I
SCHEDULE
B - Part II
SCHEDULE
SCHEDULE
D
SCHEDULE
E
SCHEDULE
F
SCHEDULE
G

Summary

(Personnel Costs)

(Personnel Benefits)

 Consultants and Contract Services

Other Direct Jail Operating Costs

Cost Allocation Plans/Indirect Cost Proposals

 Equipment (Depreciation) Costs

Building Depreciation



What is it?

The Marshals Service is dependent upon state or local governments for the provision of detention space and services for federal prisoners.

In support of this requirement, Intergovernmental Agreements (IGAs) are established with those local and state governments willing to provide detention space for federal prisoners in return for a mutually acceptable fixed per diem rate based on actual and allowable costs.

To request a per diem rate or an increase to the current per diem rate, the USMS requires the local governments to complete and submit a Form USM-243, Cost Sheet for Detention Services, to the local United States Marshal’s office. The local USMS office will forward the cost sheet to the Prisoner Services Division for review, evaluation, and approval.

BACKGROUND

Title 18, United States Code (U.S.C.) 4013(a), authorizes the Attorney General to make payments from the Federal Prisoner Detention Appropriation for the necessary clothing, medical care, guard services, housing, care, and security of prisoners held in custody of a United States Marshal pursuant to federal law, under agreements with state or local units of government.

The United States Marshals Service (USMS) recognizes that the Federal Government is dependent upon state or local governments for the provision of detention space and services for federal prisoners held for court appearances or for transport to a designated facility for service of sentence.

In support of this requirement, Intergovernmental Agreements (IGAs) are established with those local and state governments willing to provide detention space for federal prisoners in return for a mutually acceptable fixed per diem rate based on actual and allowable costs.

An IGA is a formal written agreement between the USMS and a state or local government to house federal prisoners at a fixed per diem rate based on actual and allowable costs for the same level of service provided to state or local prisoners in a specific facility. To request a per diem rate or an increase to the current per diem rate, the USMS requires the local governments to complete and submit a Form USM-243, Cost Sheet for Detention Services, to the local United States Marshal's office. The local USMS office will forward the cost sheet to the Prisoner Services Division for review, evaluation, and approval.

Transportation services of prisoners to and from court and medical facilities, as well as medical guard services are allowable as a separate line item to the IGA. Other Department of Justice user components are the Immigration and Naturalization Service and the Bureau of Prisons.

PURPOSE

The purpose of this guide is to provide clear and consistent guidance for preparation of Form USM-243, Cost Sheet for Detention Services. Criteria used to evaluate fixed per diem rates based on actual and allowable costs will be in accordance with the Office of Management and Budget (OMB) Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments. OMB Circular A-87 establishes principles and standards to provide a uniform approach for determining costs and will be strictly adhered to.

BASIC GUIDELINES

The fixed per diem rate will be computed on the basis of actual, allowable, and allocable direct and indirect costs associated with the operation of the facility and that benefit federal prisoners during the most recent accounting period. Accurate prisoner population data must be submitted for the same accounting period as the cost data submitted.

The IGAs issued by the USMS are fixed rate, fixed term, and cannot be adjusted until the rate has been in effect for a period of at least 12 months from the effective date of the agreement.

The state or local government will submit a written request at least 60 days before the intended effective date of any proposed rate changes. Further, the state or local government must understand that the rate may increase, decrease or remain the same as the previous IGA rate. Submission of a budget statement by the state or local government in lieu of the Form USM-243 is not acceptable.

To be allowable, costs must be:

In determining reasonableness of a given cost, consideration will be given to whether the cost is generally recognized as ordinary, necessary, and allocable to the federal award.

CREDITS AND OFFSETS TO REPORTED COSTS

Federal grants, services generating revenues, and credits must be offset against the costs submitted on the Form USM-243. See Schedule D for specific items requiring offsetting against operational costs.

REQUIRED ADJUSTMENTS TO REPORTED COSTS

Adjustments are required to certain cost categories based on the procedural and physical operations of the detention facility. Specific items requiring adjustment are identified throughout this document, and because of their importance, are also listed below:

If non-detention staff of the sheriff/police department provides services to the detention facility or if the detention staff provides services to functions of the sheriff department, their salary and benefit costs of those employees will be prorated based on the time expended in support of the detention facility. Those costs must be reasonable and allocable to a cost center. Staff of the sheriff/police department used to provide transportation/guard services is not to be included in the operating costs. Guard/transportation services is shown as a separate line item on the IGA. The composition of cost is based on the average salary and benefits of the staff that will be used to perform guard/transportation services. The costs are to be provided on a sheet of letterhead and attached to the costs data.

If the sheriff/police chief allocates their time between the detention facility and other law enforcement functions of the department, salary and benefit costs must be prorated based on the amount of time expended in support of the detention facility;

If the detention facility is co-occupied by the sheriff/police department, local courts, probation or other local government departments, the costs of utilities, insurance, maintenance, interest and depreciation/use allowance must be prorated based upon the space occupied by each entity to the total space of the detention facility; and

If there is idle or unused space within the detention facility, the costs of utilities, insurance, maintenance, interest and depreciation/use allowance must be prorated based upon the percentage of the idle/unused space to the total space of the detention facility.

COST SHEET FOR DETENTION SERVICES (FORM USM-243)

The following instructions are provided as a guide to assist in the preparation of the Form USM-243 and should be used in conjunction with OMB Circular A-87.

SCHEDULE A - Summary

Section I - General Information

Enter the name, phone number, and address of the detention facility in the appropriate spaces.

Section II - Financial Data Summary

Line A. Time Frame (fiscal year). Enter the most recently concluded fiscal year that corresponds to the accounting period of the cost submission.

Lines B-H. Enter the computed totals from Schedules B through G.

Line I. Total Operating Costs (Sum of Schedules B-G). Enter the total of Lines B through H.

Total Actual Operating Costs from Prior Fiscal Year. For the categories reported on the Cost Sheet, enter the comparable operating costs for the prior fiscal year.

Section III - Prisoner Population Information

Prisoner population data must be submitted for the same accounting period as the cost data submitted. Enter the total inmate capacity of the detention facility and the average prisoner population by prisoner type in the appropriate blocks. The average daily prisoner population data should be verifiable to daily count logs or similar control documents.

If the detention facility houses local prisoners elsewhere for a fee, related costs of such an arrangement are not allowable for IGA rate-computation purposes; therefore, the prisoners boarded out must be excluded from the prisoner population data.

Section IV - Per Diem

Enter the requested per diem day rate to be charged for the housing of federal prisoners. and the per diem rate paid by other local and state governments for housing their prisoners.

Section V - Local Government Contact

Enter the name of the individual authorized to represent and to act for the local government in jail-day rate negotiations.

Section VI - Certification Statement

The Form USM-243 may be prepared by an individual who has knowledge of and access to the budge and accounting records for which this cost data is based; however, it must be signed by the Comptroller or Chief Financial Officer of the local government.

SCHEDULE B - Part I (Personnel Costs)

Regular and overtime salaries of personnel by position that work at the detention facility on a full-time and part-time basis are allowable as direct operating costs. If available, a list of these employees (full names, title, and salaries) should be submitted to support Schedule B.

Full-time and part-time salaries for the following personnel on the detention facility's payroll are usually allowable in full:

Guard/transportation services are shown as a separate line item on the IGA as an hourly rate when the primary duties are to provide guard transportation services.

Salaries of personnel who perform services that do not benefit federal prisoners are not allowable as follows:

SCHEDULE B - Part II (Personnel Benefits)

Generally, all related paid personnel benefit costs are allowable for the positions stated above. If salary costs were prorated then the benefits must also be prorated. The following are types of personnel benefits that are allowable:

SCHEDULE C - Consultants and Contract Services

Costs for consultant and contract services are allowable to the extent that they benefit federal prisoners. The following contract services are usually allowable:

SCHEDULE D - Other Direct Jail Operating Costs

The following are examples of cost categories that can be claimed on the Cost Sheet. Any amounts incurred in support of local court and/or law enforcement activities are not allowable. All direct costs must be reasonable and allowable under OMB Circular A-87 guidelines and supported by paid invoices and transaction listing or general ledger entries. Operating costs of separate detention facilities not utilized by federal prisoners are unallowable costs including work release facilities.

The following direct costs are not allowable:

SCHEDULE D - "Credits" Line

All revenue generated from the detention facility's operation must be offset against the direct costs claimed on the Cost Sheet. Examples are:

SCHEDULE E - Cost Allocation Plans/Indirect Cost Proposals

Generally, other local units of government provide certain services to the detention facility on a centralized basis. In order for the costs of those units of government to be included in the IGA rate computation, a central service cost allocation plan is needed to identify and assign part of those costs to the detention facility's operation on a reasonable and consistent basis. All costs and other data used to distribute the cost included in the plan should be supported by formal accounting and other records that support the propriety of the cost assignments. To include indirect costs in the IGA rate computation:

Local government operating costs not related to the detention facility's operation cannot be included for daily jail rate computation purposes. For example, costs of a water treatment facility would not be allowed if the detention facility is not served by the facility.

SCHEDULE F - Equipment (Depreciation) Costs

Equipment is defined as an article of non-expendable, tangible personal property having a useful life of more than 1 year and an acquisition cost which equals the lesser of (a) the capitalization level established by the governmental unit for financial statement purposes, or (b) $5.000. Cost allowances relating to the use of fixed assets on hand may be made through depreciation or a use-allowance.

If the depreciation method is used, records indicating the amount of depreciation taken each period must be maintained. For either method, charges must be supported by adequate property records, and physical inventories must be taken at least every 2 years (a statistical sampling approach is acceptable) to ensure that assets exist and are in use.

Without a formalized equipment depreciation policy at the local level, a use-allowance of 6 2/3 percent with a 15-year write-off period is to be used to compute allowable equipment use- allowance charges. The following are allowable when computing equipment depreciation or use- allowance charges allocable to the IGA:

SCHEDULE G - Building Depreciation

A depreciation or use-allowance charge is allowed for all buildings utilized in the performance of the IGA. Without a formal building depreciation policy at the local level, a use-allowance not exceeding 2 percent of acquisition costs should be used to compute the allowable building use-allowance charge.

The following are allowable when computing building depreciation or use-allowance charges allocable to the IGA:



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