FY2011 Budget Instructions - Indirect Cost Reporting by AaronMoule

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									            INDIRECT COST RECOVERY AND REVERSION REPORTING

In previous years DBM collected indirect cost information at the end of the budget preparation
process and specifically requested the information from the agencies known to be recovering
indirect costs. That policy changed with submission of the FY 2008 request.

All agencies receiving Federal Funds must complete form DBM-DA-27 (even if there are no
recoveries to report). Additionally, agencies that are recovering indirect costs will be required to
submit a copy of the latest approval letter from the federally cognizant agency with which the
indirect cost recovery rate was negotiated. The latest approval letter should be submitted again,
even if it was already submitted with last year’s submission.

Agencies are instructed to budget for internal indirect cost recoveries only after notifying the
assigned DBM budget analyst of the intent to do so. No agency may budget the use of Statewide
Indirect Cost Recoveries. ALL STATEWIDE INDIRECT COST RECOVERIES MUST BE
REVERTED TO THE GENERAL FUND.

DBM-DA-27 Form

The DBM-DA-27 form should be used by agencies to specify the exact amounts and types of
indirect cost recoveries and reversions made. Data should be provided at the Program level and
totaled to the Unit level and the Agency level. ALL DATA REPORTED SHOULD BE FOR
THE MOST RECENTLY COMPLETED FISCAL YEAR. The following information will be
required:

   1. List the Statewide Indirect Cost Recoveries. This is the amount of total recoveries
      allocated to Statewide Indirect costs. The allocation percentage is determined by dividing
      the amount of statewide indirect costs utilized in the Indirect Cost Allocation Plan by the
      total amount of indirect costs utilized in the calculation of the Federally Approved
      Indirect Cost Recovery Rate. The resulting percentage is the Federally Approved
      Statewide Cost Recovery Rate. Please note that both of these rates are required in the
      two far right columns of the DA-27 Form.
   2. List the Internal Indirect Cost Recoveries. This is the amount remaining from total
      indirect cost recoveries after Statewide Indirect Cost Recoveries have been subtracted.
   3. Report the amount of Indirect Cost Recoveries reverted to the General Fund. This
      amount should not be less than the amount of Statewide Indirect Cost Recoveries, but
      may be more.
   4. Report the amount of Indirect Cost Recoveries Retained by the Agency. This amount
      should be no greater than the amount of Internal Indirect Cost Recoveries, but may be
      less.

Copies of the DA-27 Form and the most current Negotiated Agreement Letter should be
included in the agency’s budget submission. Electronic copies of the DBM-DA-27 should be
sent to Bob Hausler: bhausler@dbm.state.md.us. This information is reported in Appendix I of
the Governor’s Budget Highlights Book.




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    EXAMPLE                                                        BUDGET ESTIMATES                                                                          Page _____
                                                                       FY 2010


Dept. of Budget & Management
Budget Form DBM-DA-27 (Revised 5/07)                                                                                              Please submit original and 2 duplicates
Indirect Costs
                                                                                      State Agency or Group Department of X
                                                                                          Institution or Unit
                                                                                        Program No. or Title                     XXX

                                                       INDIRECT COST RECOVERY AND REVERSION
                                                                      FY 2008
                                                                                                                                       Federally           Federally
                                                                                                $                   $                  Approved            Approved
                                                  Statewide           Internal               Reverted            Retained           Indirect Cost        Statewide Cost
                                                 Indirect Cost      Indirect Cost           to General              by                 Recovery            Recovery
        Agency                   Program Title   Recoveries          Recoveries               Fund               Agency                Rate (%)             Rate (%)
XXXA0105                Program 1                                            92,026                                     92,026                 13.22%                  9.13%
XXXA0109                Program 2                                            44,401                                     44,401                 13.22%                  9.13%
XXXA0111                Program 3                                           411,911                                    411,911                 13.22%                  9.13%
XXXD0101                Program 4                                           449,124                                    449,124                 13.22%                  9.13%
XXXG0101                Program 5                                           579,533                                    579,533                 13.22%                  9.13%
XXXG0103                Program 6                                         1,213,058                                  1,213,058                 13.22%                  9.13%
XXXH0101                Program 7                        573,274          2,918,665                 573,274          2,918,665                 13.22%                  9.13%



                        TOTALS                           573,274          5,708,717                 573,274          5,708,717




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