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 Developing a Better Understanding of Indirect
                     Costs

                                                 Presented By:

      Charlie Tardivo, Principal, Research Administration
     Consulting Services LLC Also, Special Consultant with
                         BearingPoint

  Mark Daniel, Director, Partners, Inc., Special Consultant
                       BearingPoint

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                                                                 1
                     Indirect Costs
                     • Yes…we are going to discuss the dreaded subject of
                       Indirect Costs

                                        • No green eye shades allowed

                     • We will try to give you a basic understanding and
                       appreciation of what Indirect Costs are and the fact that
                       they are ―REAL COSTS‖

                     • Basics on cost allocation pools

                     • Unallowable Costs




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                                                             2
                     Direct Costs

                     • Costs that can be identified specifically
                       with a particular sponsored project, an
                       instructional activity, or any other
                       institutional activity; or that can be
                       directly assigned to such activities
                       relatively easily with a high degree of
                       accuracy.




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                                            3
                     Indirect Costs

                     • Costs that are incurred for common or
                       joint objectives and therefore cannot be
                       identified readily and specifically with a
                       particular sponsored project, an
                       instructional activity, or any other
                       institutional activity.
                     • Indirect Costs Are Real Costs



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                                            4
                     Types of Indirect Costs Rates
                     • Provisional:
                        – Estimated rate used until actual rate is
                          determined
                     • Predetermined:
                        – Rate established for period. No carry
                          forward provision.
                     • Fixed:
                        – Rate established for period. Over/under
                          recovery is adjustment made during next
                          negotiation.


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                                                5
                     Indirect Costs Are a Formula



                     Indirect Expenses
                     _______________________   =   Pooled Cost Rate


                     MTDC Base




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                                               6
                     Indirect Costs Are a Formula
             WHERE:


                   Indirect Expenses    =   Costs incurred which
                                            cannot be identified to a
                                            specific sponsored
                                            program


                   MTDC Base            =   All sponsored research
                                            expenses less certain costs
                                            (e.g., equipment)


                   Pooled Cost Rate     =   Rate to be used during a
                                            given period



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                                              7
                     Modified Total Direct Costs (MTDC)

                     • Total direct costs excluding equipment, capital
                       expenditures, charges for patient care and
                       tuition remission, rental costs, scholarships and
                       fellowships as well as the portion of each
                       subgrant and subcontract in excess of $25,000
                       (regardless of the period covered by the
                       subgrant or subcontract).




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                                               8
                     Typical Grant Budget
     •     Salaries                                                   $ 40,000
     •     Employee Benefits                                            10,000
     •     Supplies and Services                                        13,000
     •     Travel                                                        1,000
     •     Equipment                                                     4,000
     •     TOTAL DIRECT COSTS                                         $ 68,000
     •     INDIRECT COSTS (50% OF MTDC)                                 32,000
           TOTAL                                                      $100,000


     •     Indirect Cost Calculation:50% of MTDC or 50% of $64,000 ($68,000 less $4,000)

             MTDC=MODIFIED TOTAL DIRECT COSTS
             (Direct Costs Excluding equipment in this Example)



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                                                        9
                     What Is The Process for Computing
                     Indirect Costs Rates
                     • Use audited Financial statement amounts


                     • Establish cost groupings


                     • Distribute indirect costs to benefiting activities


                     • Compute indirect cost rate



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                                                10
                     Distribution of Indirect Costs to
                     Benefiting Activities
                     • Must distribute to all benefiting activities


                     • Must be a logical method


                     • Must provide a reasonable cost estimate




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                                                11
                     Components of the Indirect Cost Rate

                     • Facility-Related Components
                        – Building Use Charge
                        – Equipment Depreciation
                        – Operations and Maintenance Expense
                        – Library


                     • Administrative Components
                        – General Administration
                        – Departmental Administration
                        – Sponsored Project Administration
                        – Student Administration and Services


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                                                 12
                     Building Use Charge
               • Source of Pool:                 Building Capital Accounts


               • Allowance:                      Depreciation on all buildings
                                        not constructed with Federal
                               Funds
               • Allocation Base:               Net Assignable Square Feet
                                                (by building) (base on space
                                                utilization survey conducted
                                        by property office)




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                                                           13
                     Building Use Charge (continued)
                     • Allocated to:
                              –    Central Administration
                              –    Central Utilities
                              –    Operations & Maintenance
                              –    General Administration
                              –    Student Services
                              –    Departmental Administration
                              –    Sponsored Project Administration
                              –    Library
                              –    Instruction
                              –    Sponsored Research
                              –    Other Activities



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                                                              14
                     Building Depreciation
        •     Building cost from financials               $500,000,000
        •     40 year life                                      2.50%
        •     Amount to be allocated                       $12,500,000
        •     Allocation of Square Footage
        •     Sq.ft.
        •     Instruction                     1,000,000
        •     Plant                             100,000
        •     Research                          250,000         12.5%
        •     Library                           200,000
        •     General Administration            125,000
        •     Student Services                  100,000
        •     Department Administration          25,000
        •     Other Activities                  200,000
        •     Total Square Feet               2,000,000
        •     Amount to be allocated                       $12,500,000
        •     Research Percentage                               12.5%
        •     Building use allocated to Research            $1,562,500

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                                                    15
                     Equipment Depreciation
                     • Source of Pool:    Equipment Inventory

                     • Allowance:         Depreciation on all University owned
                                          equipment

                     • Allocation Base:   Net assignable square feet (by
                                          Department) (based on space
                                          utilization survey conducted by
                                          property office)




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                                                16
                     Equipment Depreciation (continued)
                     • Allocated to:
                              – Central Administration
                              –    Central Utilities
                              –    Operations & Maintenance
                              –    General Administration
                              –    Student Services
                              –    Departmental Administration
                              –    Sponsored Project Administration
                              –    Library
                              –    Instruction
                              –    Sponsored Research
                              –    Other Activities



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                                                              17
                     Moveable Equipment
                     • Equipment cost from financials    $50,000,000


                     • 10 year life                            10%


                     • Amount to be allocated             $5,000,000


                     • Research percentage (space)            12.5%


                     • Equipment allocated to research     $625,000



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                                                 18
                     Operations and Maintenance Expense
                     •      Source of Pool: Operations & Maintenance
                                            Accounts

                     •      Allocation Base:        Net Assignable Square Feet (by
                                                    Building) (Based on space utilization
                                                    survey conducted by property office)

                     •      Allocated to:           Central Administration
                                                    Department Administration
                                                    Sponsored Project Administration
                                                    Library
                                                    Instruction
                                                    Sponsored research
                                                    Other activities



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                                                          19
                     Operation and Maintenance of Plant
                     •      O&M Expenses from financials                        $20,000,000
                     •      Allocation of Square Footage
                     •      Sq.ft.
                     •      Instruction                            1,000,000
                     •      Plant                                    100,000
                     •      Research                                 250,000         12.5%
                     •      Library                                  200,000
                     •      General Administration                  125,000
                     •      Student Services                         100,000
                     •      Department Administration                 25,000
                     •      Other Activities                         200,000
                     •       Total Square Feet                   2,000,00 00
                     •       Amount to be allocated                            $20,000,000
                     •      Research Percentage                                     12.5%

                     •      Building use allocated to Research                  $2,500,000


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                                                          20
                     General Administration
      •      Source of Pool: Central Administration (e.g.,
                  President’s Office, Purchasing, Payroll,
                  Administrative Computing)
                                                 General Administration (e.g.,
                                        Audiovisual, Bursar’s Office)


      •      Allocation Base:                      MTDC of Instruction, Sponsored
                                                   Research & Other Sponsored
                                        Programs


      •      Allocated to:              Instruction
                                                   Sponsored Research
                                                   Other Sponsored Programs


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                                                                 21
                     General Administration
         • General administration cost per financials    $15,000,000

                           Function            MTDC

                 Instruction               $70,000,000
                 Plant                     $20,000,000
                 Library                   $ 9,000,000
                 General Administration    $15,000,000
                 Research                  $20,000,000          10%
                 Student Services          $ 5,000,000
                 Other Activities          $61,000,000
                                          $200,000,000

         • Amount to be allocated                        $15,000,000
         • Research Percentage                                  10%

         • Amount allocated to Research                   $1,500,000

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                                                22
                     Departmental Administration
                     • Source of Pool:
                                                    Department and Dean’s Offices:
                                                    Administrative salaries and benefits as
                                                    indicated through time and effort
                                        reporting
                                                  Other administrative costs
                                        including office supplies, telephones,
                                        service contracts, postage, etc.




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                                                                    23
                     Departmental Administration                    (continued)



                     • Allocation Base:      MTDC of instruction, research
                                    and other activities


                     • Allocated to: Instruction
                                              Research
                                              Other activities




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                                                    24
                     Sponsored Project Administration

                     • Source of Pool:       Expenses of Grant and
                                    Contract Accounting and
                            Research Administration Office


                     • Allocation Base:      MTDC of above expenditures


                     • Allocated to: Sponsored Research
                                             Other Sponsored Programs




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                                                   25
                     Sponsored Project Administration
 • Sponsored Project Administration                    $1,000,000
 • Expenses per Financials
                                        Allocation    Percentage
 • Sponsored Research Activity          $20,000,000         75%
 • Training & Other Sponsored Prog.     $ 6,600,000         25%
 • Total Sponsored Activity             $26,600,000        100%
 • Amount to be allocated                              $1,000,000
 • Research percentage                                      75%
 • Sponsored Project Administration
 • Allocated to Research                                $750,000




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                                              26
                     Library
                     • Source of Pool:    Library Accounts


                     • Allocation Base:   User population statistics


                     • Allocated to:      Instruction
                                          Sponsored Research
                                          Other Activities




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                                                27
                     Library
                     Library Cost per financials                                        $7,000,000


                                                     Campus                  Research
                     User Population Statistics      Population Population


                     Faculty                         500                     100
                     Undergraduate Students          7,000                   125
                     Graduate Students               1,500                   135
                     Employees               1,000                 140


                     Total                           10,000                  500        5%


                     Library Allocation                                                 $350,000




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                                                              28
                     Indirect Cost Rate Components
                          Facility Related Components
                          Building use                   $1,562,500     9%
                          Equipment                      $ 625,000      4%
                          Operation & Maintenance        $2,500,000    14%

                          Administrative Components
                          General Administration         $1,500,000     8%
                          Dept. Administration           $2,200,000    12%
                          Spon. Proj. Administration     $ 750,000      4%
                          Student Administration         $ 150,000      1%
                          Library                        $ 350,000      2%
                          Total IDC Expenses             $9,637,500    54%

                                                        IDC RATE

                          IDC Expenses                   $ 9,637,500
                          MTDC                          $18,000,000    54%


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                                                        29
                            How the Allocation Process Works


                                                                            ADMINISTRATIO N                                                                SPO NSO RED
                BLDG           EQ UIP          O &M          General       Department   Spon.            Student        LIBRARY     O THER     INSTRUCT.    RESEARCH
                  A              B               C             D               E          F                 G              H
     Costs to allocate:
         allocate A                              a              a               a              a             a              a          a           a            a
                  0
                          allocate B             b              b               b              b             b              b          b           b            b
                                   0
                                       allocate (C+a+b)           c               c              c            c               c        c           c            c
                                                  0
                                                   allocate (D+a+b+c)             d              d            d               d        d           d            d
                                                              0
                                                                allocate (E+a+b+c+d)                                                   e           e            e
                                                                             0
                                                                                allocate (F+a+b+c+d)                                   f           f            f
                                                                                             0
                                                                                               allocate (G+a+b+c+d)                    g           g            g
                                                                                                           0
                                                                                                             allocate (H+a+b+c+d)      h           h            h
                                                                                                                         0
                                                                                                                       Totals:      (a+..+h)    (a+..+h)     (a+..+h)




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                                                                                                       30
                     OMB Circular A-21

                     • COST PRINCIPLES FOR
                            EDUCATIONAL INSTITUTIONS




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                                         31
                     The History and Evolution of Indirect
                     Cost Rates
                   – 1947 ONR reimbursed universities for indirect costs incurred for Navy contracts.

                   – 1955 DHEW used this approach to set their rate at 8% of Total Direct Costs
                     (still maximum for Training Grants)

                   – 1958 NIH Raised the rates to 15%

                   – 1958 The Bureau of Budget introduced the famous Circular A-21

                   – 1963 NIH raised the Indirect Cost Rate to 20%

                   – 1966 The Government made a commitment to fully reimburse universities for the
                     cost of federally sponsored research
                   – 1979 A-21 revision introduced the MTDC concept
                   – 1986 A-21 revision capped faculty administration costs @ 3.6%




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                                                             32
                     The History and Evolution of Indirect
                     Cost Rates             (continued)



             – 1991 A-21 revision capped administrative components (GA, DA, SPA) @ 26%

             – 1993 A-21 revision retains the 26% cap, includes the student services component under
               the cap, and establishes consistency requirements

             – 1996 A-21 revision introduces 1) Cost Accounting Standards (CAS) to all sponsored
               agreements and 2) raises the equipment threshold from $500 to $5,000. Other revisions
               were also included.

             – 1997 A-21 proposed revision introduces 1) limitations on research facilities construction
               costs, 2) changes the utility cost formula, 3) defers the elimination of cost analysis studies
               to support allocation of library costs, and 4) provides additional guidance on depreciation
               and use allowance.

             – 1997 to present




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                                                               33
                     A-21 Revision, October 1991
    •     26% Cap on administrative components (GA, DA, SPA)

    •     Certification about unallowable costs required in indirect cost proposal

    •     New unallowables, e.g. alcoholic beverages, alumni activities, lobbying,
          trustees travel, etc.

    •     Assurances from major institutions that indirect cost reimbursements for
          facilities and equipment will be expended for that purpose within 5 years.

    •     Can’t shift under-recovery of research sponsored by foreign government,
          industry, or other sponsors to federally funded research




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                                                    34
                     Four Tests of Allowability

      • The cost must:
        – Be reasonable
        – Be allocable
        – Be consistently treated
        – Conform to any limitations or exclusions in the
          sponsored agreement




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                                        35
                     What Does Allowable Mean?
                     • An ―allowable‖ cost is one that is eligible for
                       reimbursement by the Federal government

                     • Contrast with:

                              – permissible by the institution

                              – allowable by sponsoring agency

                     • An ―unallowable‖ cost is one that is not eligible for
                       reimbursement by the Federal government




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                                                                 36
                     Allowable vs. Unallowable Costs
                     • Fundamental Rule of Allowability:

                     • Cost must be related to the specific activities supported
                       by the grant




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                                                    37
                     The Cost Must Be Reasonable
                     • ―A cost may be considered reasonable if the nature of the
                       goods or services acquired or applied, and the amount
                       therefore, reflect the action that a prudent person would
                       have taken under the circumstances prevailing at the time
                       the decision to incur the cost was made.‖


                                                        (A-21)




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                                                   38
                     The Cost Must Be Allocable
                     • ―A cost is allocable… if the goods or services involved are
                       chargeable or assignable to such cost objective in
                       accordance with the relative benefits received or other
                       equitable relationship…‖




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                                                    39
                     The Cost Must Be Allocable                                   (continued)



                     • Subject to the foregoing statement, a cost is allocable to a
                       sponsored agreement if:

                              – It is incurred solely to advance the work under the sponsored
                                agreement

                              – It benefits the agreement and the institution in proportions that
                                can be approximated through reasonable methods

                              – It is necessary to the overall operation of the institution




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                                                                40
                     The Cost Must Be Consistently Treated

     • A cost is consistently treated if the sponsored agreement is
       treated in the same manner as would costs charged to other
       institutional activities. This means that generally accepted
       accounting principles appropriate to the circumstances must be
       applied.




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                                           41
                     The Cost Must Conform to
                     Limitations or Exclusions

        • Conforming costs refer to special restrictions placed on the grant
          award. A cost may pass the first three tests but remain
          unallowable simply because the sponsored agreement says the
          cost is unallowable.




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                                              42
                     A-21 Revision, July 1993
        • ―Direct costs are those costs that can be identified specifically
          with a particular sponsored project… relatively easily with a high
          degree of accuracy.‖

        • Consistent treatment of cost – ―Costs incurred for the same
          purpose in like circumstances must be treated consistently as
          either direct or indirect costs.‖

        • New rules on administrative and clerical staff costs — normally
          treated as indirect costs.




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                                              43
                     A-21 Revision, July 1993      (continued)



    • Two broad categories: Facilities and Administration

    • 26% cap on administrative components retained. Student Services
      now included within cap

    • Consistent treatment of costs – ―Costs incurred for the same
      purpose in like circumstances must be treated consistently as
      either direct or indirect costs.‖

    • New rules on administrative and clerical staff costs – normally
      treated as indirect costs

    • Predetermined rates from two to four years is the norm



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                                            44
                     Highlights of OMB Circular A-21
         SECTION B.1.b (2) — UNIVERSITY RESEARCH
         SECTION C.4.d. — ALLOCATION AND DOCUMENTATION STANDARD
         SECTION D.1. — DIRECT COSTS — GENERAL
         SECTION F.1. — DEFINITION OF FACILITIES AND ADMINSTRATION
         SECTION F.1.b.4 — ELIMINATION OF PREDOMINANT USE
         SECTION F.2. — DEPRECIATION AND USE ALLOWANCES “JOINT USE SPACE”
         SECTION F.4.a. — OPERATION AND MAINTENANCE EXPENSES
         SECTION F.3. — INTEREST
         SECTION F.5. — GENERAL ADMINSTRATION AND GENERAL EXPENSES
         SECTION F.6.b. — DEPARTMENTAL ADMINSTRATION EXPENSES
         SECTION G.2. — DISTRIBUTION BASIS (MODIFIED TOTAL DIRECT COSTS)
         SECTION G.4. — PREDETERMINED RATES FOR INDIRECT COSTS (MULTI-YEAR)
         SECTION G.6. — PROVISIONAL AND FINAL RATES FOR INDIRECT COSTS
         SECTION G.7.a. — LIMITATION ON REIMBURSEMENT OF ADMINISTRATIVE COST (CAP)
         SECTION G.8. — ALTERNATIVE METHOD FOR ADMINISTRATIVE COSTS (FIXED ALLOWANCE)
         SECTION H.1. — SIMPLIFIED METHOD FOR SMALL INSTITUTIONS
         SECTION J.8.f.4.— FRINGE BENEFITS
         SECTION J.21.g. — INSURANCE AND INDEMNIFICATION (MEDICAL MALPRACTICE INSURANCE)


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                                                            45
                    Highlights of OMB Circular A-21
                     SECTION B.1.b (2) — UNIVERSITY RESEARCH
                     SECTION C.4.d. — ALLOCATION AND DOCUMENTATION STANDARD
                     SECTION D.1. — DIRECT COSTS — GENERAL
                     SECTION F.1. — DEFINITION OF FACILITIES AND ADMINSTRATION
                     SECTION F.1.b.4 — ELIMINATION OF PREDOMINANT USE
                     SECTION F.2. — DEPRECIATION AND USE ALLOWANCES “JOINT USE SPACE”
                     SECTION F.4.a. — OPERATION AND MAINTENANCE EXPENSES
                     SECTION F.3. — INTEREST
                     SECTION F.5. — GENERAL ADMINSTRATION AND GENERAL EXPENSES
                     SECTION F.6.b. — DEPARTMENTAL ADMINSTRATION EXPENSES
                     SECTION G.2. — DISTRIBUTION BASIS (MODIFIED TOTAL DIRECT COSTS)
                     SECTION G.4. — PREDETERMINED RATES FOR INDIRECT COSTS (MULTI-YEAR)
                     SECTION G.6. — PROVISIONAL AND FINAL RATES FOR INDIRECT COSTS
                     SECTION G.7.a. — LIMITATION ON REIMBURSEMENT OF ADMINISTRATIVE COSTS (CAP)
                     SECTION G.8. — ALTERNATIVE METHOD FOR ADMINISTRATIVE COSTS (FIXED ALLOWANCE)
                     SECTION H.1. — SIMPLIFIED METHOD FOR SMALL INSTITUTIONS
                     SECTION J.8.f.4.— FRINGE BENEFITS
                     SECTION J.21.g. — INSURANCE AND INDEMNIFICATION (MEDICAL MALPRACTICE INSURANCE)
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                                                               46
                     A-21 Revision, July 1993
    • ―The salaries of administrative and clerical staff should normally be
      treated as indirect costs.
    • Direct charging of these costs may be appropriate where a major
      project or activity explicitly budgets for administrative or clerical
      services and individuals involved can be specifically identified with
      the project or activity.
    • Items such as office supplies, postage, local telephone costs, and
      memberships shall normally be treated as indirect costs.‖




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                                             47
                     Main Objectives of Changes
                     • Tighten rules on allowability and allocation of costs

                              – Primary focus on IDC

                     •       Promote greater standardization in treatment of costs

                              – Also directed primarily at IDC




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                                                             48
                     1996 Revisions and Changes to A-21

                     • Extend CAS and Disclosure Statement to grants

                     • Increase maximum equipment capitalization level to
                       $5,000

                     • Change cognizant agency assignments

                     • Eliminate most special cost analysis studies

                     • Require same IDC rate for entire competitive segment of
                       a project period




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                                                   49
                     1996 Changes to A-21 (continued)

            • Standardize treatment of unrecovered depreciation when
              institution converts from use allowances to depreciation

            • Add new conditions for allowability of interest costs

            • Disallow tuition benefits for employee family members




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                     Extend CAS to Grants and
                     Cooperative Agreements
                     • Four standards and Disclosure Statement

                     • Standards apply to all grants, contracts and cooperative
                       agreements

                     • Collectively called Sponsored Agreements

                     • No dollar threshold for application of standards

                     • Disclosure Statement applies to larger schools

                     • All institutions receiving $25M (regardless of amount of
                       individual awards)



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                     Equipment Capitalization
                     • Change capitalization threshold to $5,000 or amount used
                       for financial statements, whichever is less

                     • Issues

                              – Treatment of unrecovered costs of equipment capitalized at lower
                                levels in prior years

                              – Timing of change

                              – Impact of change on cost recovery




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Changes to Cognizant Agency System

                     • Limits cognizant agencies to HHS or DOD/ONR

                     • Assignments based on which agency provides the most
                       funds to an institution:

                              – Shifts major DOD schools and Princeton to HHS

                              – Shifts between DOD and HHS would occur after 1997

                              – Alternative arrangements may be worked out between HHS and
                                ONR, with OMB approval




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                     Special Cost Studies
                     • Would not allow special studies for utilities, libraries,
                       student services

                     • Substitute standard space weighting factors for utilities

                     • Reasons:

                              – Special studies are a source of disagreement

                              – Cause disparity in indirect cost rates

                              – More expensive to conduct than standard allocation bases




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                     Special Cost Studies
                     • Would not allow special studies for utilities, libraries,
                       student services

                     • Substitute standard space weighting factors for utilities

                     • Reasons:

                              – Special studies are a source of disagreement




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                     Same Rate for Competitive Segment
                     of Project
                     • Require IDC rate in effect at start of each competitive
                       segment of a project to be used for entire period

                     • Award levels can not be adjusted for rate changes

                     • Reasons:

                              – Peer reviewers and agencies would know total cost to government
                                when decision to fund project is made

                              – Make agency practices consistent




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                     Conversion from Use Allowances to
                     Depreciation

            • Requires depreciation after conversion to be computed as if the
              asset had been depreciated over its entire useful life

            • Unrecovered depreciation of prior years can not be recovered
              in the future

            • More recent revisions




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                                               57
                     IDC Return Policies/Issues
                           Common misconceptions; can IDCs be “returned”
                           or are we actually talking about incentive $
                           Intent of the program
                                        Support research
                                        Admin support
                                        Resource support
                                        Available funds need to be spent
                                        and spent wisely
                                        Amounts and who gets what
                                        Spending levels—Reduce Dormant Funds




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                     Sponsor restrictions on IDC

                     •                  When a sponsor states “No Overhead” do they
                                        really mean it?
                     •                  Read the fine print
                     •                  Can you substitute direct for indirect where
                                        allowed
                     •                  Admin costs and staff—F.6.b. applies to Federal
                                        programs
                     •                  Space related costs; square foot cost from IDC
                                        proposal




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                                                              59
                     Cost Sharing


                                        What is it and why should we care?
                                        What is the affect on the IDC rate?
                                        Set up review and approval policy and process
                                        Develop policy prior to base year
                                        Reimbursement by department




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                                                            60
                     Other Issues
                     • Time and Effort Issues

                     • Research Base Review
                                        Identify and document non research funds


                     • Space Issues
                                        Update space survey
                                        Targets are rooms identified as 100% research
                                        Compare to Time and Effort Report


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                     Other Issues Cont’d
                     • Base Year strategies and planning
                                        Reviews are never too early
                                        Where possible, begin adjustments before the
                                        base year


                     • Short to Long form and S&W vs MTDC
                                        How to enhance IDC rates
                                        What support systems needed




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  Developing a Better Understanding of Indirect Costs

                                                 Presented By:

      Charlie Tardivo, Principal, Research Administration
     Consulting Services LLC Also, Special Consultant with
                         BearingPoint

  Mark Daniel, Director, Partners, Inc., Special Consultant
                       BearingPoint



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