USM-243: Cost Sheet for Detention Services
This form is only used for IGAs at non-CONUS locations,
Limited Use Agreements (LUAs), juvenile facilities, special medical
services rates and certain administrative modifications. Effective November 19, 2007,
it is mandatory for most applicants requesting a new IGA or housing rate
modification to use the e-IGA automated process by submitting the
application to the Office of the Federal Detention Trustee (OFDT).
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:
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:
- authorized or prohibited under State or local laws or regulations;
- in accordance with generally accepted accounting principles;
- net of all applicable credits; and
- adequately documented.
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.
- A determination will be made whether specific costs benefit federal prisoners. If the costs do
not benefit federal prisoners, they cannot be claimed on the Cost Sheet. Costs not benefiting
federal prisoners are identified as individual line items throughout this document. Some examples
of unallowable costs are:
- Work Release Program or similar program costs, since USMS prisoners do not participate
in this program. If the U.S. Bureau of Prisons houses prisoners at the detention facility as
a user-agency and those prisoners participate in the Work Release Program, then the
related costs may be allowable;
- Off-site medical care costs and prescription costs for local inmates and USMS prisoners.
when the USMS is billed and pays separately to the medical facility; and
- Costs to operate other local detention facilities where no USMS prisoners are housed.
Prisoner population data for the other facilities must not be included in Schedule A,
Section III.
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:
- jail management officials, except the sheriffs salary is only allowable based on the
percentage of time spent managing the detention facility's operations;
- administrative support personnel;
- detention officers and other uniformed personnel assigned to the detention facility;
- maintenance personnel;
- cooks and aides;
- training officers may be claimed as part-time personnel. (If this position is
responsible for training the entire sheriffs department, then costs must be prorated
and based on a verifiable method, such as the percentage of allowed employees
assigned to the detention facility to the sheriffs department's total staffing level.);
- on-site medical personnel, if services are provided to all prisoners;
- religious counselors; and
- transportation officers, if they also perform duties as a detention officer.
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:
- appointed and elected officials; e.g.. mayors. district attorneys, board of
supervisors, county judges, etc.;
- public defenders, probation/parole officers, local prisoners' attorneys and other
local court personnel;
- commissary personnel, if the costs are reimbursed from commissary profits;
- staff assigned to the Work Release Program or similar programs that USMS
prisoners do not participate in. If the U.S. Bureau of Prisons houses prisoners at
the detention facility as a user-agency and those prisoners participate in the Work
Release Program, then the related costs may be allowable;
- law enforcement personnel assigned to non-detention functions of the sheriff/police
department such as patrol officers, detectives, and investigators;
- personnel assigned to local farm operations that support the detention facility and
that local prisoners participate in; and
- transportation officer if they do not transport federal prisoners
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:
- retirement plan costs;
- state and federal (FICA) payroll taxes (limited to a maximum of 7.65 percent);
- life, health, and dental insurance plans;
- workman's compensation insurance; and
- employee uniforms, including shoes, if not claimed as a direct operating cost under
Schedule D.
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:
- in-house medical, dental, and mental health care. Medical co-payments charged to local
prisoners must be offset against any claimed medical costs. Medical co-payments cannot
be charged to federal prisoners or the Federal Government;
- laboratory and x-ray costs provided to federal prisoners if the USMS is not billed
separately for these services;
- custodial and maintenance (prorate if building is co-occupied);
- legal services (see unallowable direct costs for exceptions); and nondenominational
religious services.
- The following types of contract costs are usually not allowable:
- GED and other educational programs, if the short confinement periods for federal
prisoners do not allow adequate participation time;
- prescription/pharmacy, if the USMS is billed separately for such medication; and
- electronic monitoring of prisoners and home detention.
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.
- food and kitchen supplies. Any monies realized from an employee meal program in
operation at the detention facility must be offset against the claimed cost;
- inmate clothing;
- medical care supplies;
- bedding and linen;
- toiletries;
- recreation and education. If any costs are reimbursed by the Commissary fund, the
reimbursement must be offset against the claimed cost;
- utilities (prorate, if building is co-occupied);
- employee uniforms, including shoes (detention facility staff only, and only if not included
as a personnel benefit);
- safety and sanitation supplies and services (prorate if building is co-occupied);
- maintenance supplies (prorate if building is co-occupied);
- office supplies and postage;
- telephone and communication (prorate if building is co-occupied);
- insurance (prorate if building is co-occupied). Any refunds and earnings or investment
income on self-insurance reserves must be offset against the claimed cost;
- employee education, conferences, and subscriptions related to the operation of the
detention facility;
- travel expenses. 4 1 CFR 30 1, Federal Travel Regulation, should be utilized as a guide for
evaluating the allowableness of travel expense claims;
- interest as long as the financing costs were paid or incurred on or after September 1, 1995,
for new construction, renovation and expansion that was completed on or after October 1,
1980 (prorate if building is co-occupied). Debt services (principle) is unallowable and and
any earnings on debt service reserve funds and interest earned on the borrowed funds
pending payment of expenses must be offset against the claimed cost.
- current year purchases of equipment costing less than $5,000 (or a lesser amount in
accordance with the local government's established equipment capitalization policy). An
inventory list of the equipment must be maintained that includes description, date
purchased, cost, etc. The cost of equipment claimed here cannot be included on Schedule
F - Equipment Cost for the purpose of computing allowable depreciation charges.
The following direct costs are not allowable:
- fees paid to other local governments for the housing of local prisoners. Prisoners housed
at other facilities should not be included in the prisoner population data submitted in
Schedule A, Section III, Prisoner Population Information;
- off-site hospital and medical care for local prisoners and USMS prisoners if billed and paid
separately by the federal government for similar services;
- costs for transporting and producing local prisoners to local court proceedings;
- alcoholic beverages;
- contributions to a contingency reserve or any similar provision, such as for future vehicle
or equipment purchases, or for any other events the occurrence of which cannot be
foretold with certainty as to time, or intensity, or with an assurance of their happening;
- contributions and donations, including cash, property. and services. regardless of the
recipient;
- membership fees in organizations engaged in lobbying;
- legal expenses for prosecution of claims against the Federal Government and those
incurred in connection with any criminal, civil, or administrative proceedings commenced
by the United States or a state to the extent provided in 10 U.S.C. 2324(k);
- fines, penalties, damages, and other settlements resulting from violations (or alleged
violations) of, or failure of the governmental unit to comply with federal, state, local, or
Indian tribal laws and regulations, except when incurred as a result of compliance with
specific provisions of the IGA;
- costs for entertainment, including amusement, diversion. and social activities and any costs
directly associated with purchase of tickets to shows or sporting events, meals, lodging,
rentals, transportation, and gratuities); and
- required repayments of unused grant monies to grantors.
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:
- commissions earned from prisoners' use of long distance telephone services;
- insurance rebates, recoveries, or indemnities on losses;
- commissary profits, if the funds are not placed in a prisoner's trust account to be used
solely for the benefit of prisoners;
- federal school lunch reimbursements;
- employee meal program charges; and
- fees, other than prisoner lodging costs. received from other jurisdictions for services
provided.
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:
- The indirect costs or cost allocation plans must be approved by the Comptroller or Chief
Financial Officer;
- The costs must benefit both the IGA and other local government activities, must be
distributed to all activities in reasonable proportions to the benefits received, and must be
supported by subsidiary records that allow confirmation of the accuracy of the
distributions;
- Similar or identical costs cannot be charged as direct costs to the IGA. The following
categories require scrutiny to ensure duplicate or unallowable claims are not made: travel
expenses, legal expenses, conferences, professional services, and miscellaneous expenses;
and
- The pre-allocation cost basis of each category claimed must be verifiable.
- The following are examples of categories of indirect costs, a portion of which may be
assigned to the detention facility for inclusion in the IGA rate computation:
- Motor pool operations, fuel, and maintenance provided mileage is not included as a
separate line item on the IGA; and
- ADP, procurement, personnel, administrative, financial, and accounting support provided
by staff of the local government and/or the non-detention operations of the police/sheriffs
department.
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:
- equipment meeting the local government's established capitalization criteria;
- equipment used in the general operation of the detention facility; and
- equipment used in programs that federal prisoners participate in.
- The following are not allowable when computing equipment depreciation or
use-allowance charges allocable to the IGA:
- payments to cash reserves for acquisitions made or planned after the accounting period of
the cost submission;
- The cost of equipment received from the Federal Government through the Federal Excess
Property Program or similar programs, or purchased with funds received from the Federal
Government;
- The cost of equipment contributed by or for the governmental unit, or a related donor
organization, in satisfaction of a matching requirement;
- The cost of vehicles used for prisoner transportation, if the USMS is not provided prisoner
transportation services or is billed separately for transportation services;
- The cost of surplus, idle, fully depreciated, or inappropriate equipment items;
- The cost of equipment below the established capitalization threshold; and
- The cost of equipment in use in programs that federal prisoners do not participate in (e.g..
detention facility farm operations).
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:
- the cost of building additions, renovations, and improvements; and
- the cost of land improvements, such as paved parking areas, fences and sidewalks.
- The following are not allowable when computing building depreciation or use allowance
charges allocable to the IGA:
- the cost of land;
- any portion of the cost of buildings borne by or donated by the Federal Government such
as Cooperative Agreement Program (CAP) funding;
- any portion of the cost of buildings contributed by or for the local governmental unit, or a
related donor organization, in satisfaction of a matching requirement;
- cost assignable to unused or idle space within the facility;
- cost assignable to space occupied by non-detention functions of the local government; and interest, as long as the financing costs were paid or incurred on or after September 1, 1995, for
building acquisition and construction, and the related renovation or remodeling was completed on
or after October 1, 1980 (prorate if building is co-occupied). Debt service is unallowable and any
earnings on debt service reserve funds and interest earned on the borrowed funds pending
payment of expenses must be offset against the claimed cost.
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