Statement of Treatment of Paid Absencesb. They should also support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Organizations must have a system in place to equitable charge costs. Overhead rate. An indirect cost rate is calculated as a percentage by dividing the total allowable indirect costs by an equitable distribution base, as an example: Indirect pool$150,000Distribution base$776,700Indirect cost rate19.31%. Added to item 7. in the Indirect Cost Rate Proposal (ICR) Checklist for First Time NICRA comments on documentation to be provided by small business to support the proposed indirect cost rate. Indirect costs represent administrative expenses associated with the cost of doing business that are not readily identified project activities. F&A costs for the first $25,000 of each consortium may be included in the modified total direct cost base, when calculating the overall F&A rate, as long as your institution's negotiated F&A rate agreement does not express prohibit it. Schedule of all awards grouped by funding agency with majority federal funding listed on top. This guidance does not supersede information and requirements on the development, calculation, and application of indirect costs and indirect cost rates in 2 CFR Part 200, Uniform Administrative Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the General Terms and Conditions for Awards to Organizations (For grants and cooperative agreements issued January 1, 2022, or later). The first category is direct cost which is the cost of actually doing work for clients. Document meeting, telephone conversations, and e-mails. ______ Yes. The hours recorded in the timesheet are reconciled to payroll and job cost system. The allocation base should best represent the causal relationship between costs being allocated and the final cost objectives (awards, fundraising, lobbying, etc.). (A) An indirect cost pool of $200,000 (B) A salary and fringe total of $300,000. Payroll documentation should be maintained to support the charging of salaries as direct or indirect (download example below). Some nonprofit organizations treat all costs as direct costs except general administration and general expenses. The checklist below addresses the documentation to provide and steps needed when seeking a revised provisional rate and/or final rates. Refer to Section 2.E. Financial statements must be reconciled to the indirect cost rate calculations. In any instance where an indirect cost rate other than that specified in the NICRA is used in an award, the grantee is required to acknowledge the above stipulations by providing a written acknowledgement to USAID. The lesser of the two . Further, if at any time during the fiscal year an organization determines that its current provisional rate is no longer accurate and materially misstated it should advise M/OAA/CAS/OCC accordingly. You can find plans and specifications, plan holder lists, addenda, reference information, questions and answers and other contract documents in the Strategic Pavement Preservation 2023 contract . Understanding cost allocation and indirect cost rates under the - RCAC Below are the names, email addresses and telephone numbers of the Contract Specialist responsible to negotiate each organizations indirect cost rate agreement (NICRA). Note that a final indirect cost rate is established after an organization's actual costs are known, typically a fiscal year. Sponsored Project Award Allocations: Calculating Direct and Indirect Costs