Over the past several years, the federal review and approval of Washington state’s Statewide Cost Allocation Plan (SWCAP) have continued to fall behind. The fiscal year 2026 plan, submitted in April 2025, makes a total of three plans that are pending review and approval by the U.S. Department of Health and Human Services (HHS), including the plans for fiscal years 2024 and 2025. Due to HHS reorganization and reduced staffing, there is no estimated time for completion.

Our guidance for agencies, unless otherwise directed, is to continue to use the fixed cost amount from the last approved SWCAP agreement in their indirect plans. Currently, this is the fiscal year 2023 plan (2021 Financials). As plans are approved, agencies should make an adjustment in the current fiscal year for the difference between the newly approved plan and the one they used.

Once HHS approves any outstanding SWCAPs, Statewide Accounting will notify agencies that it is available and can be viewed on the OFM SWCAP webpage.

Statewide Accounting is in the process of onboarding a new contractor who helps prepare and submit our SWCAP. Therefore, we have been approved a 90-day extension for the 2027 plan submission.

If you have any questions, please direct them to Toni Smith via Teams or toni.smith@ofm.wa.gov.