HomeMy WebLinkAboutResolutions - 2026.02.19 - 42732
AGENDA ITEM: Amendment #2 to the Michigan Department of Health and Human Services FY
2026 Emerging Threats Local Health Department Agreement
DEPARTMENT: Health & Human Services - Health Division
MEETING: Board of Commissioners
DATE: Thursday, February 19, 2026 9:30 AM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2026-6181
Motion to approve amendment #2 to the FY 2026 Emerging Threats Local Health Department
Agreement from the Michigan Department of Health and Human Services in the amount of
$495,163; further, authorize the Chair of the Board of Commissioners to execute the agreement;
further, amend the FY 2026 budget as detailed in the attached Schedule A.
ITEM CATEGORY SPONSORED BY
Grant Penny Luebs
INTRODUCTION AND BACKGROUND
The Oakland County Health Division received Amendment #2 to the Michigan Department of Health
and Human Services Fiscal Year 2026 Emerging Threats Local Health Department Agreement.
Amendment #2 provides Epidemiology and Laboratory Capacity (ELC) Program funds in the
amount of $495,163 to support Regional Laboratory System operations, including sampling,
surveillance activities, and reporting.
The Epidemiology and Laboratory Capacity (ELC) Program provides funding to detect, prevent and
respond to emerging infectious diseases.
The Michigan Regional Laboratory System provides high quality clinical and environmental testing,
serves as partners to support local public health initiatives, engages in outbreak preparedness and
response, and offers equitable access to testing to meet the needs of citizens. The Oakland County
Health Division Laboratory serves as the Michigan Region 2N Regional Laboratory.
POLICY ANALYSIS
• Grant accepted was approved via resolution #2025-5776.
• Amendment #1 was approved via resolution #2025-5972, in the amount of $100,000 for the
Regional Lab Project.
• Amendment #2 will increase the department's agreement amount to $833,769.
• Amendment #2 continues one (1) PTNE and one (1) FTE position.
FISCAL IMPACT: Budget Amendment Attached
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Kate Guzman, Health Officer
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 2/19/2026
AGENDA DEADLINE: 02/05/2026 4:30 PM
ATTACHMENTS
1. HHS-Health - FY2026 - Grant Amendment Local Health Department Emerging Threats
Agreement Amendment #2 Schedule A
2. Grant Amendment Sign-Off #2
3. Amendment #2 Contract Draft
4. FY 26 ELC Regional Lab budget for Schedule A Budget Amendment
5. Amendment #2 ATT I
COMMITTEE TRACKING
2026-02-10 Public Health & Safety - Forward to Finance
2026-02-11 Finance - Recommend to Board
2026-02-19 Full Board - Adopt
Motioned by: Commissioner Yolanda Smith Charles
Seconded by: Commissioner Linnie Taylor
Yes: Charles Cavell, Ann Erickson Gault, Marcia Gershenson, Robert Hoffman, Brendan
Johnson, Karen Joliat, Christine Long, Penny Luebs, Gwen Markham, William Miller III, Kristen
Nelson, Angela Powell, Robert Smiley, Yolanda Smith Charles, Linnie Taylor, Philip Weipert,
David Woodward (17)
No: None (0)
Abstain: None (0)
Absent: Michael Spisz (1)
Passed
Oakland County, Michigan
HEALTH AND HUMAN SERVICES DEPARTMENT/HEALTH DIVISION - FY 2026 EMERGING THREATS LOCAL HEALTH DEPARTMENT AGREEMENT AMENDMENT #2
R/E Fund Name Division Name
Fund #
(FND)Cost Center (CCN) #
Account #
(RC/SC)
Program #
(PRG)Grant ID (GRN) #
Project ID #
(PROJ)
Region
(REG)
Budget
Fund
Affiliate
(BFA)
Ledger
Account
Summary Account Title
FY 2026
Amendment
FY 2027
Amendment
FY 2028
Amendment
R Human Services Grants Health FND11007 CCN1060212 RC615571 PRG133120 GRN-1004813 615000 State Operating Grants $495,163.00 $-$-
Total Revenues $495,163.00 $-$-
E Human Services Grants Health FND11007 CCN1060212 SC750294 PRG133120 GRN-1004813 750000 Material and Supplies $85,163.00 $-$-
E Human Services Grants Health FND11007 CCN1060212 SC760157 PRG133120 GRN-1004813 760000 Equipment $170,000.00 $-$-
E Human Services Grants Health FND11007 CCN1060212 SC730646 PRG133120 GRN-1004813 730000 Equipment Maintenance $240,000.00 $-$-
Total Expenditures $495,163.00
GRANT REVIEW SIGN-OFF – Health & Human Services/Health
GRANT NAME: FY 2026 Emerging Threats - Local Health Department Agreement AWD00691
FUNDING AGENCY: Michigan Department of Health & Human Services (MDHHS)
DEPARTMENT CONTACT PERSON: Stacey Smith 248-452-2151
STATUS: Amendment #2 (Greater than 15% Variance from Current Award)
DATE: 1/28/2026
Original grant contract authorized by Resolution#2025-5776
SUMMARY:
Emerging Threats Agreement adjusts funding for the Local Health Department programs
that increased the total funding from $338,606 to $833,769.
DEPARTMENT REVIEW
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01/16/2026
Contract #: 20260501-01
Amendment Number: 2 to the
Between
Michigan Department of Health and Human Services
and
County of Oakland
hereinafter referred to as the "Local Governing Entity"
on Behalf of Health Department
Oakland County Department of Health and Human Services/ Health Division
AMENDMENT PURPOSE AND JUSTIFICATION
1.The purpose of this amendment is to:
1. Add/revise information in Attachment I - Annual Budget Instructions;
2. Add/revise information in Attachment III - Program Specific Assurance and
Requirements; and
3. Incorporate Attachment IV- Funding/Reimbursement Matrix as revised for the
Essential Local Public Health Service (ELPHS) and categorical budget details, output
measures and performance criteria.
4. Increase the Department's agreement amount from $338,606 to $833,769, as
shown on the Attachment B budget pages.
2.Amendment Revisions:
The following are the additions/revisions to Attachment I and III
A) The following projects include additions/revisions as highlighted in Attachment I -
Annual Budget Instructions:
No Change
B) The following projects include additions/revisions as highlighted in Attachment III -
Program Specific Assurance and Requirements:
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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1. PFAS Response – All Locations
Following are adjustments to funding levels of the Local Health Department
agreement as reflected in Attachment IV:
Budget line item changes are reflected in the attached budgets for the
following elements:
Project Title Current
Amount
Amended
Amount
New Project
Amount
ELC Regional Lab 100,000 495,163 595,163
Total Comprehensive Funding 100,000 495,163 595,163
Performance Level Adjustments
N/A
Budget category Adjustments
It is understood and agreed that all other conditions of the original agreement remains
the same.
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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3.Signing this amendment
The individual or officer signing this amendment certifies by their signature that they
are authorized to sign this amendment on behalf of the responsible governing board
official or agency.
Signature Section
For Oakland County Department of Health and Human Services/ Health Division
David T. Woodward County Commissioner
01/14/2026
___________________________________________________________________
Name Title Date
For the Michigan Department of Health and Human Services
Terri Smith 01/05/2026
___________________________________________________________________
Terri Smith, Director Date
Bureau of Grants and Purchasing
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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Attachments
Attachment I - Instructions for the Annual Budget
Attachment III - Program Specific Assurances and Requirements
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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Contract # Date: 01/16/2026
MICHIGAN DEPARTMENT OF HEALTH AND HUMAN SERVICES
ATTACHMENT IV - Emerging Threats- Local Health Department - 2026
CONTRACT MANAGEMENT SECTION
Oakland County Department of Health and Human Services/ Health Division
Program Element/Funding Source
(a)
MDHHS
Source
Fed/St Funding
Amount
Reimbursement
Method
(b)
Performance
Target
Output
Measurement
Total (c)
Perform
Expect
State (d)
Funded
Target
Perform
State Funded Minimum
Performance Percent
Number (e)
Contractor /
Subrecepient
(f)
ELC Regional Lab Reg. Alloc.S 100,000 Actual Cost
Reimbursement
N/A N/A N/A N/A N/A Recepient
PFAS Response - Airport Reg. Alloc.S 60,390 Actual Cost
Reimbursement
N/A N/A N/A N/A N/A Recepient
PFAS Response - Falk Rd Reg. Alloc.S 3,216 Actual Cost
Reimbursement
N/A N/A N/A N/A N/A Recepient
Regional Lab Workforce Reg. Alloc.F 175,000 Actual Cost
Reimbursement
N/A N/A N/A N/A N/A Subrecepient
TOTAL MDHHS FUNDING 338,606
*SPECIFIC OUTPUT PERFORMANCE MEASURES WILL BE INCORPORATED VIA AMENDMENT
Attachment IV Notes
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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Contract # Date: 01/16/2026
Project Budgets
1 Program Budget Summary
PROGRAM / PROJECT
Emerging Threats- Local Health Department - 2026 / ELC
Regional Lab
DATE PREPARED
1/16/2026
CONTRACTOR NAME
Oakland County Department of Health and Human Services/
Health Division
BUDGET PERIOD
From : 12/1/2025 To : 6/30/2026
MAILING ADDRESS (Number and Street)
1200 N. Telegraph Rd.
34 East
BUDGET AGREEMENT
Original Amendment
AMENDMENT #
2
CITY
Pontiac
STATE
MI
ZIP CODE
48341-1032
FEDERAL ID NUMBER
38-6004876
Category Total Amount
DIRECT EXPENSES
Program Expenses
1 Salary & Wages 0.00 0.00
2 Fringe Benefits 0.00 0.00
3 Cap. Exp. for Equip & Fac.0.00 0.00
4 Contractual 0.00 0.00
5 Supplies and Materials 90,000.00 90,000.00
6 Travel 0.00 0.00
7 Communication 0.00 0.00
8 County-City Central Services 0.00 0.00
9 Space Costs 0.00 0.00
10 All Others (ADP, Con. Employees, Misc.)10,000.00 10,000.00
Total Program Expenses 100,000.00 100,000.00
TOTAL DIRECT EXPENSES 100,000.00 100,000.00
INDIRECT EXPENSES
Indirect Costs
1 Indirect Costs 0.00 0.00
2 Cost Allocation Plan / Other 0.00 0.00
Total Indirect Costs 0.00 0.00
TOTAL INDIRECT EXPENSES 0.00 0.00
TOTAL EXPENDITURES 100,000.00 100,000.00
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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Contract # Date: 01/16/2026
2 Program Budget - Source of Funds
SOURCE OF FUNDS
Category Total Amount Cash Inkind
1 Source of Funds
Fees and Collections - 1st and 2nd
Party
0.00 0.00 0.00 0.00
Fees and Collections - 3rd Party 0.00 0.00 0.00 0.00
Federal or State (Non MDHHS)0.00 0.00 0.00 0.00
Federal Cost Based Reimbursement 0.00 0.00 0.00 0.00
Federally Provided Vaccines 0.00 0.00 0.00 0.00
Federal Medicaid Outreach 0.00 0.00 0.00 0.00
Required Match - Local 0.00 0.00 0.00 0.00
Local Non-ELPHS 0.00 0.00 0.00 0.00
Local Non-ELPHS 0.00 0.00 0.00 0.00
Local Non-ELPHS 0.00 0.00 0.00 0.00
Other Non-ELPHS 0.00 0.00 0.00 0.00
MDHHS Non Comprehensive 0.00 0.00 0.00 0.00
MDHHS Comprehensive 100,000.00 100,000.00 0.00 0.00
MCH Funding 0.00 0.00 0.00 0.00
Local Funds - Other 0.00 0.00 0.00 0.00
Inkind Match 0.00 0.00 0.00 0.00
MDHHS Fixed Unit Rate
Totals 100,000.00 100,000.00 0.00 0.00
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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Contract # Date: 01/16/2026
3 Program Budget - Cost Detail
Line Item Qty Rate Units UOM Total
DIRECT EXPENSES
Program Expenses
1 Salary & Wages
2 Fringe Benefits
3 Cap. Exp. for Equip & Fac.
4 Contractual
5 Supplies and Materials
Materials & Supplies 0.0000 0.000 0.000 90,000.00
6 Travel
7 Communication
8 County-City Central Services
9 Space Costs
10 All Others (ADP, Con. Employees, Misc.)
Equipment Maintenance 0.0000 0.000 0.000 10,000.00
Total Program Expenses 100,000.00
TOTAL DIRECT EXPENSES 100,000.00
INDIRECT EXPENSES
Indirect Costs
1 Indirect Costs
2 Cost Allocation Plan / Other
Total Indirect Costs 0.00
TOTAL INDIRECT EXPENSES 0.00
TOTAL EXPENDITURES 100,000.00
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Contract # Date: 01/16/2026
Summary of Budget
PROGRAM / PROJECT
Emerging Threats- Local Health Department - 2026 /
Emerging Threats- Local Health Department - 2026
DATE PREPARED
1/16/2026
CONTRACTOR NAME
Oakland County Department of Health and Human Services/
Health Division
BUDGET PERIOD
From : 10/1/2025 To : 9/30/2026
MAILING ADDRESS (Number and Street)
1200 N. Telegraph Rd.
34 East
BUDGET AGREEMENT
Original Amendment
AMENDMENT #
2
CITY
Pontiac
STATE
MI
ZIP CODE
48341-1032
FEDERAL ID NUMBER
38-6004876
Category Total Amount
DIRECT EXPENSES
Program Expenses
1 Salary & Wages 120,565.00 120,565.00
2 Fringe Benefits 51,491.00 51,491.00
3 Supplies and Materials 90,000.00 90,000.00
4 Travel 144.00 144.00
5 All Others (ADP, Con. Employees, Misc.)68,461.00 68,461.00
Total Program Expenses 330,661.00 330,661.00
TOTAL DIRECT EXPENSES 330,661.00 330,661.00
INDIRECT EXPENSES
Indirect Costs
1 Cost Allocation Plan / Other 7,945.00 7,945.00
Total Indirect Costs 7,945.00 7,945.00
TOTAL INDIRECT EXPENSES 7,945.00 7,945.00
TOTAL EXPENDITURES 338,606.00 338,606.00
SOURCE OF FUNDS
Category Total Amount Cash Inkind
1 Fees and Collections - 1st and 2nd
Party
0.00 0.00 0.00 0.00
2 Fees and Collections - 3rd Party 0.00 0.00 0.00 0.00
3 Federal or State (Non MDHHS)0.00 0.00 0.00 0.00
4 Federal Cost Based Reimbursement 0.00 0.00 0.00 0.00
5 Federally Provided Vaccines 0.00 0.00 0.00 0.00
6 Federal Medicaid Outreach 0.00 0.00 0.00 0.00
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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Contract # Date: 01/16/2026
7 Required Match - Local 0.00 0.00 0.00 0.00
8 Local Non-ELPHS 0.00 0.00 0.00 0.00
9 Local Non-ELPHS 0.00 0.00 0.00 0.00
10 Local Non-ELPHS 0.00 0.00 0.00 0.00
11 Other Non-ELPHS 0.00 0.00 0.00 0.00
12 MDHHS Non Comprehensive 0.00 0.00 0.00 0.00
13 MDHHS Comprehensive 338,606.00 338,606.00 0.00 0.00
14 MCH Funding 0.00 0.00 0.00 0.00
15 Local Funds - Other 0.00 0.00 0.00 0.00
16 Inkind Match 0.00 0.00 0.00 0.00
17 MDHHS Fixed Unit Rate 0.00 0.00 0.00 0.00
TOTAL 338,606.00 338,606.00 0.00 0.00
Emerging Threats- Local Health Department - 2026, Date: 01/16/2026
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Budget Period Date Prepared
10/01/25 To 09/30/26 1/16/2026
SUB-CATEGORY/
CATEGORY
TOTAL
FRINGE BENEFITS (722740)-
TRAVEL
Personal Mileage (731346) - 0 Miles @
Travel and Conference (732018)
TOTAL -
SUPPLIES AND MATERIALS
Office Supplies (750399)-
Drugs (750112)-
Computer Supplies (750049)-
Materials & Supplies (750294) 175,163.00
Postage (750448)-
Printing (731388)-
Medical Supplies (750301)-
Training - Educational Supplies (750567)
TOTAL 175,163.00
COMMUNICATIONS
Telephone Communications (778675) -
Wi-Fi (730324)-
TOTAL -
OFFICE SPACE
Building Space Rental (770631)-
Rent (731626)-
TOTAL -
CONTRACTUAL (730373)
Professional Services (731458) Vendor (s) -
Subrecipient Agreement (730373) Agency (s) -
TOTAL -
CAPITAL EXPENDITURES AND EQUIPMENT
Lab Equipment (760157)170,000.00
Furniture and Fixtures (760160)
Vehicals (760188)
TOTAL 170,000.00
OTHER EXPENSES
IT Operations (774636)-
Liability Insurance (774677)-
Info Tech Print Managed Services (774637) -
Radio Communications (777560)-
Equipment Maintenance (730646) 250,000.00
Freight & Express (730772)-
Interpretation Fees (730982)-
Construction (730352)
Software Rental Lease Purchase (731773) -
Workshops and Meetings (732165)-
Subscriptions (731339)-
Laundry & Cleaning (731059)-
Lab fees (731031)-
Advertising (730072)-
Training (731941)
Expendable Equipment (750154)-
TOTAL 250,000.00
INDIRECT COSTS
on Salaries & Wages of - -
TOTAL 595,163.00
PROGRAM BUDGET
Code
DESCRIPTION ITEM TOTALQUANTITY
Program
ELC Regional Lab
1
ATTACHMENT I
MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES
Emerging Threat Local Health Department Agreement
October 1, 2025- September 30, 2026
Fiscal Year 2026
INSTRUCTIONS
FOR THE
ANNUAL BUDGET
2
INSTRUCTIONS FOR THE ANNUAL BUDGET FOR LOCAL HEALTH DEPARTMENT
SERVICES
TABLE OF CONTENTS
Page
INTRODUCTION ............................................................................................................................ 1
MINIMUM BUDGETING REQUIREMENTS ................................................................................... 1
LOCAL ACCOUNTING SYSTEM STRUCTURE OF ACCOUNTS/COST ALLOCATION
PROCEDURES .............................................................................................................................. 3
REIMBURSEMENT CHART ........................................................................................................... 4
BUDGET PREPARATION DETAIL……………………………………………………………………....5
General Information…………………………………………………………………………………5
Expense Line-Item Detail……………………………………………………………………….….6
Source of Funds…………………………………………………………………………….……..16
3
INTRODUCTION
The Annual Budget for Local Health Services is completed on a state fiscal year basis and is used
to establish budgets for many Department programs. In the Annual Budget, the Department
consolidates many of its categorical programs’ funding and Essential Local Public Health Services
(ELPHS) into a single, Comprehensive Agreement for local health departments. The
Department's Plan and Budget Framework serves as a principal reference point for budget
development.
The Annual Budget for Local Health Services must be completed in accordance with and adhere
to the established requirements as specified in these instructions and submitted to the Department
as required by the agreement.
The MI E-Grants System is an on-line application, including the budget entry forms, are utilized to
develop a budget summary for each program element administered by the local Grantee. The
system is designed to accommodate any number of local program elements including those
unique to a particular local Grantee. Applications, including budget forms, are completed for all
program elements, regardless of the reimbursement mechanism, including Agency
administration(s) fee for service program elements, categorical program elements, performance-
based program elements and Medicaid Outreach associated program elements. Budget entry is
required for each major expenditure and source of fund categories for which costs/funds are
identified.
MINIMUM BUDGETING REQUIREMENTS
Cost Principles
Types or items of cost which will be considered for reimbursement are generally consistent with
definitions contained in Title 2 Code of Federal Regulations CFR, Part 200 Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Federal Block Grant Funds
Maternal & Child Health and Preventive Health Block Grant funds may not be used to: provide
inpatient services; make cash payments to intended recipients of health services; purchase or
improve land; purchase, contract or permanently improve (other than minor remodeling defined as
work required to change the interior arrangements or other physical characteristics of any existing
facility or installed equipment when the cost of the remodeling incident does not exceed $2,000)
any building or other facility; or purchase major medical equipment (any item of medical equipment
having a unit cost of over $10,000 and used in the diagnosis or treatment of patients, excluding
equipment typically used in a laboratory); satisfy any requirement for the expenditure of non-federal
funds as a condition for the receipt of Federal funds; or provide financial assistance to any entity
4
other than a public or nonprofit private entity.
Expenditure and Funding Source Breakdown
For purposes of development, analysis and negotiation activities must be budgeted at the individual
expenditure and funding source category level on the Annual Budget for Local Health Services.
Special Budget Requirements for Certain Categorical Program Elements
The Annual Budget for Local Health Services is completed in the MI E-Grants System through the
application budget to include details for all program elements (excluding Administration and
Grantee Support). See special budget and reporting section below section.
Local MCH
Local MCH funds can be used to support the health of women, children, and families in
communities across Michigan. Funding addresses one or more Title V Maternal and Child Health
Block Grant national and state priority areas and/or a local MCH priority need identified through a
needs assessment process. Priority areas are developed into Local MCH Work Plans which are
described in the Annual Local MCH Plan. These funds are to be budgeted as a funding source in
two project categories. The Local MCH projects need to be budgeted separately. Please note only
two LMCH project titles can be used:
• MCH – Children
• MCH – All Other
These funding sources cannot be used under the WIC element except in extreme circumstances
where a waiver is requested in advance of expenditures, and evidence is provided that the
expenditures satisfy all funding requirements. Local health departments are encouraged to select
only one to two performance measures and delve deeper into the strategies in an effort to “move
the needle.”
REIMBURSEMENT CHART
The Reimbursement Chart notes elements/funding sources, applicable payment methods, target
levels, output measures for each program/element having a performance reimbursement option.
In addition, the chart also provides the subrecipient, contractor, or recipient designations, as in
prior years.
The type of project designation is indicated by footnote and is used if the project meets the
Research and Development Project criteria. Research and Development Projects are defined by
Title 2 CFR, Section 200.87, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards.
5
Research and development (R&D) means all research activities, both basic and applied, and all
development activities that are performed by non-Federal entities. Research is defined as a
systematic study directed toward fuller scientific knowledge or understanding of the subject
studied. The term research also includes activities involving the training of individuals in research
techniques where such activities utilize the same facilities as other research and development
activities and where such activities are not included in the instruction function. Development is the
systematic use of knowledge and understanding gained from research directed toward the
production of useful materials, devices, systems, or methods, including design and development
of prototypes and processes.
LOCAL ACCOUNTING SYSTEM STRUCTION OF ACCOUNTS / COST
ALLOCATION PROCEDURES
As in past years, no additional accounting system detail is being required beyond local uniform
accounting procedures prescribed by the Michigan Department of Treasury, Local Financial
Management System requirements, documentation requirements of categorical program funding
sources and any local requirements. Some agencies may already have separate cost centers in
their accounting system to directly identify costs and related funding of required services, but such
breakdowns are not essential to being able to meet minimum reporting requirements if proper
allocation procedures are used and adequate documentation is maintained. All allocations must
have clearly measurable bases that directly apply to the amounts being allocated, must be
documented with work papers that will provide an adequate audit trail and must result in a
representative reporting of costs and funding for affected programs. More specific guidance can
be found in Title 2 CFR, Part 200 Appendix V State/Local Government and Indian Tribe-Wide
Central Service Cost Allocation Plans and the brochure published by the Department of Health
and Human Services entitled “A Guide for State, Local and Indian Tribal Governments: Cost
Principles and Procedures for Developing Cost Allocation Plans and Indirect Cost Rates for
Agreements with the Federal Government.
BUDGET PREPERATION DETAIL
1. Budgeted expenditures are to be entered for each program element, project, or group of
services by applicable major category.
2. The Budget should reflect all planned expenditures and revenues associated with the
program. Funding source revenues include Federal funding sources, fees and collections,
local, state, and other sources.
6
3. When developing the budget, it is important to note that total program expenditures must
equal total program revenues.
4. Although a Grantee’s budget is approved, it does not mean expenses are approved.
Reported expenses are subject to audit and must comply with Federal regulations, the
terms of the agreement, and other policy impacting the allowability of expenses. Certain
expenses may require prior approval, which should be in writing from MDHHS.
5. It is the Grantee’s responsibility to ensure budgeted expenses comply with Federal
regulations, the terms of the agreement, and other policy impacting the allowability of
expenses, and have documented prior approval, as needed, when the budget is submitted
for review.
EXPENSE LINE- ITEM CATEGORIES
1. Salaries and Wages
a. This category includes compensation paid to permanent and part-time employees on the
payroll of the Grantee who work in the program. Is reasonable for the services rendered
and conforms to the established written policy of the Grantee consistently applied to both
Federal and non-Federal activities.
b. This category may include the cost of leave/paid time off (e.g., vacation, sick, holiday,
bereavement, military) or the cost of leave/paid time off may be included as a fringe benefit,
based on the Grantee’s written policy. See Section 2, Fringe Benefits. Leave/paid time off
cannot be included in both categories and must be consistently budgeted and expensed for
all Federally and non-Federally funded programs and activities of the Grantee.
c. This category does not include personnel hired on a private contract basis or through a
personnel service, contractual services, or professional fees. Consulting services,
professional fees or personnel hired on a private contracting basis should be included in
Contractual – Professional Services.
d. Charges to salaries and wages must be based on records that accurately reflect the work
performed. The records must:
1) Reflect the total activity for which the employee is compensated by the non-federal
entity, not to exceed 100 percent.
7
2) Encompass federally assisted and all other activities compensated by the non-
federal entity on an integrated basis but may include the use of subsidiary records
as defined in the non-federal entity’s written policy.
3) Support the distribution of the salaries or wages among specific activities or cost
objectives if the employee works on more than one federal or non-federal program;
an indirect cost activity and a direct cost activity; more than one indirect activity
which are allocated using different distribution bases; or an allowable and
unallowable activity.
e. See Title 2 CFR 200.430 for salaries and wages regulations.
2. Fringe Benefits
a. Fringe benefits include, but are not limited to, the costs of leave/paid time off (e.g.,
vacation, sick, holiday, bereavement, military), employee insurance (e.g., employer paid
portion of health, dental, vision, life), pensions, employer contribution to a retirement
account, bonuses, health stipends in lieu of health insurance, unemployment, workers
compensation, social security.
b. The cost of leave/paid time off, and other taxable income (e.g., bonuses, health stipends in
lieu of health insurance) may be included in salaries/wages, . See Item 1 above. It cannot
be included in both categories and must be consistently budgeted and expensed for all
Federally and non-Federally funded programs and activities of the Grantee.
c. The cost of fringe benefits is allowable provided they are reasonable and are required by
law, or a Grantee-employee agreement or established in the Grantee’s written policy.
d. Fringe benefit costs must be equitably allocated to all activities (Federal award activity and
non-Federal award activity).
e. See Title 2 CFR 200.431 for fringe benefit regulations.
3. Employee Travel and Training
a. This category includes the cost of travel and training for full and part-time employees
working in the program.
b. This category does not include travel and training costs for personnel hired on a private
contract basis or through a personnel service, for contractual services, or for volunteers.
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c. This category includes the cost of mileage, lodging, per diem, meals, tips, modes of
transportation, approved registration fees for conferences, seminars, and other types of
training related to the program.
d. The costs must be consistent with the Grantee’s written policy and procedures to be
allowable.
e. See Title 2 CFR 200.474 for travel expense requirements.
4. Supplies and Materials
a. This category includes consumable and short-term items costing less than five thousand
dollars ($5,000).
b. Examples include office supplies, office furniture, computers, computer software, printers,
printing, postage, janitorial supplies, educational supplies, medical supplies, etc. according
to the requirements of the program.
c. This category does not include the cost of supplies and materials related to operating a
shelter or other emergency housing.
d. Purchases of materials and supplies must be charged at the actual price, net of applicable
credits.
e. For budgeting purposes, when the Supplies and Materials line-item budget will not exceed
10 percent of the total budgeted grant expenses, specific detail will not be required. Detail
is required only when the Supplies and Materials line-item budget will exceed 10 percent.
5. Subawards – Subrecipient Services
a. This category includes the cost of an agreement (subaward) between the Grantee and
another organization for the purpose of carrying out a portion of the Grant program. A
subaward is a subrecipient relationship.
b. See below to differentiate between a subrecipient and a contractor.
SUBRECIPIENT AND CONTRACTOR DETERMINATION FACTORS
Title 2 CFR 200.331states that a pass-through entity (in this case the Grantee) must make case
by case determinations whether an agreement it makes for the disbursement of Federal funds
casts the party receiving the funds in the role of a subrecipient or contractor.
In determining whether an agreement casts the role of party receiving the Federal funds from the
Grantee as a subrecipient or contractor, the substance of the relationship is more important than
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the form of the agreement. All characteristics listed below may not be present in all cases and the
Grantee must use judgement when determining if the agreement is a subaward or a procurement
contract.
Subrecipient Characteristics
A subaward is for the purpose of carrying out a portion of a Federal award and creates a Federal
assistance relationship with the subrecipient. Characteristics of a subrecipient include:
1. In accordance with its agreement, uses the Federal awards to carry out a public purpose
specified in authorizing statute, as opposed to providing goods and services for the benefit
of the pass-through entity.
2. Is responsible for adherence to applicable Federal program requirements specified in the
Federal award.
3. Has responsibility for programmatic decision making.
4. Determines who is eligible to receive what Federal assistance.
5. Has its performance measured in relation to whether objectives of the Federal program are
met.
Contractor Characteristics
A contract is for the purpose of obtaining goods or services for the non-Federal entity’s own use
and creates a procurement relationship with the contractor. Characteristics of a contractor include:
1. Provides goods and services within normal business operations.
2. Provides similar goods and services to many different purchasers.
3. Normally operates in a competitive environment.
4. Provides goods or services that are necessary to support the operation of the Federal
program.
5. Is not subject to compliance requirements of the Federal program as a result of the
agreement although similar requirements may apply of other reasons.
6. Contractual – Professional and Personnel Services
a. This category includes the costs of professional and personnel services rendered by
members of a particular profession or possess a certain skill set and are not employees of
the Grantee.
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b. This category includes the costs of services such as accounting, auditing, payroll,
consulting, services, contract employees, etc.
c. Grantees generally hire contract employees in place of part-time or full-time staff because
of the need for specialized skills or budgetary reasons.
d. The Grantee is not responsible for taxes, social security, workers compensation,
unemployment, health benefits, sick or vacation time for contract employees.
e. Travel expenses may be included when it is part of the contract terms between the Grantee
and the contractor.
f. Training expenses may be included when it is part of the contract terms between the
Grantee and the contractor.
7. Communications
a. This category includes the cost of telephone services (cell and/or land lines), hotline, data
lines, internet services, cloud services, copy machine, and website necessary for the
operation of the program.
b. The cost of certain telecommunication and video surveillance services or equipment are
prohibited in accordance with Title 2 CFR 200.216.
c. For budgeting purposes, when the Communications line-item budget will not exceed 10
percent of the total budgeted grant expenses, specific detail will not be required. Detail is
required only when the Communications line-item budget will exceed 10 percent.
8. Grantee Rent Expense
a. This category includes the cost of rent/leases by the Grantee for space related to the
operation of the program.
b. This category does not include the cost of client rent assistance or equipment
rentals/leases.
9. Space Expenses
a. This category includes costs to maintain a facility related to the operation of the program.
Costs include electricity, heating and air conditioning, maintenance and repairs, lawncare
and snowplowing, janitorial services, insurance, security system, depreciation (when the
space is owned by the Grantee), etc.
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b. These costs must be allocated equitably to all Federal and non-Federal activities related to
the space.
c. Shelter Expenses – The costs associated with operating a shelter. Includes such things as
rent or depreciation, insurance, utilities, maintenance and repairs, snow removal, lawn
care, trash removal, security system etc.
10. Capital Expenditures – Equipment and Other
a. Capital Expenditures – Equipment
1) Equipment is defined as an article of non-expendable property having a useful live of
more than one year and acquisition cost of $5,000 or more per unit. Items with an
acquisition cost of less than $5,000 classified as supplies and materials.
2) The cost of single a single unit or piece of equipment includes the necessary
accessories and installation costs.
3) When the Grantee’s definition and threshold differs from the definition above, the
Grantee will budget and report only those equipment purchases of $5,000 or more, on
the Capital Expenditures – Equipment and Other line item.
4) Equipment purchases must have prior written approval from MDHHS if the item will be
expensed in the year of purchase. The approved Budget does not qualify as prior
written approval. When equipment purchases are not expensed in the year of purchase,
the Grantee may only expense the deprecation calculated in accordance with its written
policy.
b. Capital Expenditures – Other
1) This category includes capital outlay for capital assets other than equipment.
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CAPITAL ASSETS AND DEPRECIATION
Title 2 CFR 200.1 defines capital assets as tangible or intangible assets used in
operations having a useful life of more than one year which are capitalized in
accordance with Generally Accepted Accounting Principles and includes:
• Land, buildings (facilities), equipment, and intellectual property (including
software) whether acquired by purchase, construction, manufacture, exchange,
or through a lease accounted for as financial purchase under GASB or a finance
lease under FASB.
Additions, improvements, modifications, replacements, rearrangements, reinstallations,
renovations, or alterations to capital assets that materially increase their value or useful
life.
Title 2 CFR 200.439(b) includes the following rules of allowability for equipment and
other capital expenditures.
1. Capital expenditures for general purpose equipment, building, and land are
unallowable as direct charges, except with the prior written approval of the
Federal awarding agency or the pass-through entity.
2. Capital expenditures for special purpose equipment are allowable as direct costs,
provided that items with a cost of $5,000 or more have prior written approval of
the Federal awarding agency or the pass-through entity.
3. Capital expenditures for improvements to land, buildings, or equipment which
materially increase their value or useful life are unallowable as a direct cost
except with prior written approval from the Federal awarding agency or the pass-
through entity.
4. When approved as a direct charge, capital expenditures will be charged in the
period in which the expenditure is incurred.
5. The unamortized portion of any equipment written off as a result of a change in
capitalization levels may be recovered by continuing to claim the otherwise
allowable depreciation on the equipment or by amortizing the amount to be
written off over a period of years negotiated with the Federal cognizant agency
for indirect cost.
6. Cost of equipment disposal is allowable if the non-Federal entity is instructed by
the Federal awarding agency to otherwise dispose or transfer the equipment.
7. Equipment and other capital assets are unallowable as indirect costs.
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Title 2 CFR 200.1 defines capital assets as tangible or intangible assets used in
operations having a useful life of more than one year which are capitalized in
accordance with Generally Accepted Accounting Principles and includes:
• Land, buildings (facilities), equipment, and intellectual property (including
software) whether acquired by purchase, construction, manufacture, exchange,
or through a lease accounted for as financial purchase under GASB or a finance
lease under FASB.
• Additions, improvements, modifications, replacements, rearrangements,
reinstallations, renovations, or alterations to capital assets that materially
increase their value or useful life.
11. Client Assistance – Rent
a. This category includes the cost of rental assistance provided for eligible clients in
accordance with the program requirements.
b. The Grantee must account for rental assistance separate from all other client
assistance.
12. Client Assistance – All Other
a. This category includes the costs of providing assistance for eligible clients in
accordance with program requirements. The guidance below is not meant to be
comprehensive, and some costs may not be allowable for a particular program. It
is the Grantee’s responsibility to budget and report expenses in accordance with
the program requirements.
b. Examples include:
1. Gift Cards/Prepaid Cards/E-Cards/Store Cards/Vouchers – The cost various
types of purchase cards (e.g., gas, phone, food), vouchers (e.g., laundry
vouchers for a local laundromat), and public transportation cards/tokens, etc.
in accordance with program requirements.
2. Transportation – The cost of taxis, Uber, Lyft, etc. for eligible clients when
necessary for the health and safety for eligible clients in accordance with
program requirements.
3. Utilities – The costs associated with heat, electricity, water, etc. for eligible
clients in accordance with program requirements.
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4. Personal Care – The costs associated with food, formula, clothing, diapers,
toiletries, medication, medical equipment, etc. for eligible clients in
accordance with program requirements.
5. Safety – The cost of changing windows and doors or locks, cost of short-term
alternative housing (e.g., hotel due to shelter capacity), security cameras,
assistance for obtaining long-term housing for a victim (regardless of
distance, based on safety needs) etc. for eligible clients in accordance with
program requirements.
6. Other – The cost of assistance not specifically identified above for eligible
clients in accordance with program requirements
13. Other Expenses
a. This cost category includes expenses not previously identified on other line items
purchased for the operation of the program.
b. This cost category does not include indirect expenses which are included below.
14. County / City Central Services
a. These are costs associated with central support activities of the local governing
unit allocated to the local health department accordance with Title 2 CFR, part
200.
15. General and Administrative Indirect Expenses
These cost categories are used to distribute costs of general administrative operations
that have not been directly charged to individual subrecipient programs. The Indirect Cost
expenditures distribute administrative overhead costs to each program element, project,
or service grouping. Two separate local rates may apply to the agreement period (i.e.,
one for each local fiscal year). Use Calendar Rate 1 to reflect the rate applicable to the
first part of the agreement period and Calendar Rate 2 for the rate applicable to the latter
part. Indirect costs are not allowed on programs elements designated as vendor
relationship.
An indirect rate proposal and related supporting documentation must be retained for audit
in accordance with records retention requirements. In addition, these documents are
reviewed as part of the Single Audit, subrecipient monitoring visit, or other State of
Michigan reviews.
Following is further clarification regarding indirect rate and/or cost allocation approval
requirements to distribute administrative overhead costs, in accordance with Title 2 CFR
Part 200 (formerly Circular A-87 2 CFR Part 225, Appendix E), for Local Health
Departments budgeting indirect costs:
1. Local Health Departments receiving more than $35 million in direct Federal awards
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are required to have an approved indirect cost rate from a Federal Cognizant
Agency. If your Local Health Department has received an approved indirect rate
from a Federal Cognizant agency, attach the Federal approval letter to your MI E-
Grants Grantee Profile.
2. Local Health Departments receiving $35 million or less in direct Federal awards
are required to prepare indirect cost rate proposals in accordance with Title 2 CFR
and maintain the documentation on file subject to review.
3. Local Health Departments that received approved indirect cost rates from another
State of Michigan Department should attach their State approval letter to their MI
E-Grants Grantee Profile.
4. Local Health Departments with cost allocation plans should reflect these
allocations in the Other Cost Distributions budget category.
The amount of Indirect Cost should be allocated to all appropriate program elements with
the total equivalent amount reflected as a credit or minus in the Administration projects.
County-City Central Services Cost Allocation Plan
a. This category includes the allocation of central services costs allocated to the
program.
b. Central service departments are within the county or city government that exist to
provide support services to other operating departments within that unit of
government.
c. Examples of central service departments include finance, accounting, facilities
maintenance, information technology, human resources, purchasing, motor
pools, etc.
d. All costs and data used the distribute the costs included in the plan must be
supported by formal accounting and other records that support the propriety of
the costs assigned to Federal awards.
e. Each central service cost allocation plan is required to be certified by the local
government.
f. See Title 2 CFR Part 200 Appendix V, State/Local Governmentwide Central
Service Cost Allocation Plans for specific requirements.
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Other Indirect Cost Distributions
a. This category includes various contributing activity costs to appropriate program
areas based on a documented allocation methodology in accordance with Title 2
CFR 200.
b. This category is generally associated with governmental entities that utilize a
City-County Central.
c. Use to distribute various contributing activity costs to appropriate program areas
based upon activity counts, time study supporting data or other reasonable and
equitable means. An example of Other Cost Distributions is nursing supervision.
The distribution process permits costs reflected in a single program element to be
subsequently distributed, perhaps only in part, to other programs or projects as
appropriate. If an allocation is made, the charges must be reflected in the
appropriate program element and the offsetting credit reflected in the program
element being distributed. There must be a documented, well-defined rationale
and audit trail for any cost distribution or allocation based upon Title 2 CFR,
Part 200 Cost Principles Local Health Departments using the cost distribution or
cost allocation must develop the plan in accordance with the requirements
described in Title 2 CFR, Part 200. Local Health Departments should maintain
supporting documentation for audit in accordance with record retention
requirements. The plan should include a Certification of Cost Allocation plan in
accordance with Title 2 CFR, Part 200 Appendix V. The cost allocation plan
documentation is not required to be submitted unless specifically requested.
d. Cost associated with the Essential Local Public Health Services (ELPHS), Maternal
and Child Health (MCH) Block Grant and Fixed Fee may be budgeted in the
associated program element and distributed to the associated projects.
e. Federal Provided Vaccine Value should be reported on a separate line and clearly
identified.
SOURCE OF FUNDS
Source of funds are to be entered for each program element, project, or group of
services by applicable major category as follows.
1. MDHHS Comprehensive
Funding (Federal and/or State dollars) provided by MDHHS for this grant agreement.
2. Fees and Collections – 1st and 2nd Party
a. 1st party funds received from private payers, including patients, source users,
and any member of the general public receiving services.
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b. 2nd party funds received from organizations, private or public, who might
reimburse services for a group or under a special plan.
c. Revenues will be reported when earned (accrual basis of accounting) or when
received (cash basis of accounting).
3. Fees and Collections – 3rd Party
a. 3rd Party funds received from private insurances, Medicaid, Medicare, or other
applicable titles of the Social Security Act directly related to the cost of providing
patient care or other services.
b. Revenues will be reported when earned (accrual basis of accounting) or when
received (cash basis of accounting).
4. Local Funds
All local support in the appropriate element, project, or service group column. This may
include local property tax, and other local revenue. Does not include fees.
5. Federal or State (Non MDHHS)
Funds provided to directly to the Grantee from the State of Michigan or the Federal
government (other than MDHHS) to support the program.
6. Other
Funding provided by foundation grants, United Way grants, private donations, fund-
raising, charitable contributions, etc. that provide support to the program.
7. In-Kind Match
Represents the value of donated services (e.g., accounting, legal, medical, etc.),
donated materials and supplies, donated space, etc. that support the program.
8. MDHHS Fixed Unit Rate
Select the type of fee-for-services from the lookup button to correspond with the
program element.
9. MCH Funding
This section includes all the funding projected to be due under Comprehensive
Agreement specific to the CMH eligible program elements. Please note: the MI E-
Grants System validates the MCH budgeted funds across the appliable program
elements to assure the agreement does not exceed the MCH allocation.
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10. Required Match – Local
Funds projected to be local contribution for programs that have a match contribution
requirement (Please note: for Medicaid Outreach, CSHCS Medicaid Outreach, or
Nurse Family Partnership Medicaid Outreach, this amount represents the 50% matching
local contribution for allocable Medicaid Outreach Activities. Federal Medicaid Outreach
and Required Local match amounts should equal each other.)
12. Federal Medicaid Outreach
(Please note: to be used only for Medicaid Outreach, CSHCS Medicaid Outreach or
Nurse Family Partnership Medicaid Outreach program elements.) Funds projected to
be received from the federal government for allowable Medicaid Outreach activities.
This amount represents the anticipated 50% federal administrative match of local
contributions.
13. Federally Provided Vaccines
The projected value of federally provided vaccines.
14. Local Non-ELPHS (Local funds budgeted for the following expenditures)
1. Expenditures for services not designated as required and allowable for ELPHS
funding (e.g., medical examiner and inpatient maternity services); expenditures
determined not to be reasonable; and expenditures in excess of the maximum
state share of funds available.
2. Any losses arising from uncollectible accounts and other related claims. Under-
recovery of reimbursable expenditures from, or failure to bill, available funding
sources that would otherwise result in exclusions from ELPHS funding, if
recovered.
3. However, no exclusion is required where the local jurisdiction has made and
documented a decision to have local funds underwrite:
a. The cost of uncollectible accounts or bad debts incurred in support of
providing required or allowable health services. An example of this condition
would be for services provided to indigents who are billed as a matter of
procedure with little chance for receipt of payment.
b. Potential recoveries or under-recoveries from other sources for the principal
purpose of providing required and allowable health services at free or
reduced cost to the public served by the Grantee. An example would be
keeping fees for services at a reduced level for the benefit of the people
served by the Grantee while recognizing that to do so limits recovery from
third parties for the same types of services.
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4. Contributions to a contingency reserve or any similar provisions for unforeseen
events.
5. Charitable contributions and donations.
6. Salaries and other incidental expenditures of the chief executive of a political
subdivision (i.e., county executive and mayor). Legislative expenditures, such as,
salaries and other incidental expenditures of local governing bodies (i.e., county
commissioners and city councils). Do not enter board of health expenses.
7. Expenditures for amusements, social activities and other incidental expenditures
related to, such as, meals, beverages, lodging, rentals, transportation, and
gratuities.
8. Fines, penalties, and interest on borrowings.
9. Capital Expenditures - Local capital outlay for purchase of facilities and equipment
(assets) are excluded from ELPHS funding.
15. Other Non- ELPHS
Funds budgeted from sources other than state, federal and local appropriations to the
extent that they are not eligible for ELPHS (e.g., funding from local substance abuse
coordinating grantee, local area on aging grantees).
16. Federal Cost Based Reimbursement
Funds received from Federal Cost Based Reimbursement must be budgeted and
reported in the program in which they were earned. See MCBR Budget and FSR
MDHHS Guidance for reporting requirements.