PPT-Key Risk Areas in A/E Firm Indirect Cost Rates

Presented by Dan Purvine AE Clarity Consulting and Training LLC Topics Overview of key risk areas Labor charging Compensation Nonlabor costs Audit testing of key risks Copyright 2015 . PEPS Center of Excellence Manager. October 18, 2014. Selection Processes and Administrative Qualification. Agenda Topics. 2. Rules Changes – Alignment with FHWA Requirements. Overview of Administrative Qualification. U.S. Department of Education. Objectives. Overview of Indirect Costs. Key Changes Under the Uniform Guidance. GAN Changes. De Minimis . R. ate. Grant Extensions. Sub-Recipient Rates. Timelines. Time and Effort . . . WHAT ARE INDIRECT COST RATES????. Indirect Cost Pool-How Deep?. Indirect Cost Base-How Large?. Indirect Cost Rate-How High?. AGENDA. . Who Are We- Indirect Cost Branch. Definitions. Why Indirect Cost Rates Are Needed; Including An Example . iX: . debt and its cost. Debt, the double-edged sword!. From Cost of Equity to Cost of Capital. The cost of capital is a composite cost to the firm of raising financing to fund its projects. . In addition to equity, firms can raise capital from debt. U.S. Department of Education. Objectives. Overview of Indirect Costs. Key Changes Under the Uniform Guidance. GAN Changes. De Minimis . R. ate. Grant Extensions. Sub-Recipient Rates. Timelines. Time and Effort . October 18, 2014. Selection Processes and Administrative Qualification. Agenda Topics. 2. Rules Changes – Alignment with FHWA Requirements. Overview of Administrative Qualification. Preparing for the Federal Process. Office of Management and Budget (OMB) – Circular A-87. US Department of Education. Delegates authority for rate determination to states. Delegation agreement renews every five years. Authority. 2. Costs of a general nature which are not readily identifiable with the activities of the grant but are incurred for the joint benefit of those activities and other activities or programs of the organization. Presenter: Controller-Treasurer Department - Cost Management Unit . March 7, 2017: Part I – Overview – Back to the Basics. March 16, 2017: Part II – Setting the rates - Governmental Funds, Proprietary Funds . U.S. Department of Education. Objectives. Overview of Indirect Costs. Key Changes Under the Uniform Guidance. GAN Changes. De Minimis . R. ate. Grant Extensions. Sub-Recipient Rates. Timelines. Time and Effort . U.S. Department of Education. Objectives. Overview of Indirect Costs. Key Changes Under the Uniform Guidance. GAN Changes. De Minimis . R. ate. Grant Extensions. Sub-Recipient Rates. Timelines. Time and Effort . Office of Management and Budget (OMB) – Circular A-87. US Department of Education. Delegates authority for rate determination to states. Delegation agreement renews every five years. Authority. 2. Costs of a general nature which are not readily identifiable with the activities of the grant but are incurred for the joint benefit of those activities and other activities or programs of the organization. U.S. Department of Education. Objectives. Overview of Indirect Costs. Key Changes Under the Uniform Guidance. GAN Changes. De Minimis . R. ate. Grant Extensions. Sub-Recipient Rates. Timelines. Time and Effort . Objectives. Identify types of costs – both direct and indirect. Calculate . salaries and fringe benefits. Identify the requirements for graduate students. Identify the requirements for a collaborator. Fiscal Year . #### Rates—provides guidance for all fiscal years. Authority. Office of Management and Budget (OMB) – Circular A-87. US Department of Education. Delegates authority for rate determination to states.