State of Maine Department of Education Local

Transcript:State of Maine Department of Education Local:
State of Maine Department of Education Local Education Agency Indirect Cost Rate Proposal September 30, 2015 Presented by: Nelson Clugston, Vice President Sheri Smith, Principal Consultant nelsonclugston@maximus.com SheriLSmith@maximus.com Presentation Topics Defining Indirect Costs Indirect Cost Rates Types of Costs LEA ICRP Workbook and Instructions Data Needed Let’s Get Started Implementation References Defining Indirect Costs Costs that are “incurred for a common or joint purpose benefiting more than one cost objective, and not directly assignable to cost objectives benefited without effort disproportionate to results achieved.” Indirect Cost Rates Unrestricted Rate – Applies to grants not subject to the supplement-not-supplant legislative restriction Restricted Rate – Applies to grants that are made under federal programs with supplement-not-supplant requirements. Most USDE grants have this clause. Some costs that are considered to be indirect when calculating the unrestricted rate are “adjusted” to direct costs when calculating the restricted rate The template being provided will calculate both rates based on the data that you provide when filling in each tab of the workbook. A listing of restricted rate grants by CFDA number is available as a reference on MDE’s website % Predetermined Rate is applicable to a specified current or future period based on an estimate of the costs to be incurred during the period. It is not subject to adjustment Provisional Rates is a temporary rate applicable to a specified period pending the establishment of a final rate for the period Fixed with Carry-Forward Rates is a rate that is adjusted by the difference between the estimated costs and the actual costs of the period covered by the rate. The variance is carried forward as an adjustment to the rate computation of a subsequent period. Types of Rates Carryforward Calculation FY15 Rate based on FY13 Costs FY13 Actual Indirect Costs $100,000 FY13 Actual Direct Costs $5,000,000 FY15 Indirect Cost Rate: $100,000/$5,000,000 = 2.00% FY15 Carryforward Calculation FY15 Actual Indirect Costs $110,000 FY15 Actual Direct Costs $4,500,000 FY15 Indirect Costs Recovered: $4,500,000 * Rate of 2.00% = $90,000 Less Actual Indirect Costs of $110,000 = Under Recovery of $20,000 FY17 Rate based on FY15 Costs FY15 Actual Indirect Costs $110,000 FY15 Under Recovery $ 20,000 Total FY17 Indirect Costs $130,000 Divided by FY15 Actual Direct $4,500,000 FY17 Indirect Cost Rate = 2.89% Life Cycle of Indirect Cost Plans July, 2016 Begin Using New Rates July – November, 2015 Prepare FY 2017 ICRP based on FY 2015