DCED Fiscal Directives & Fiscal Questions and Answers April 20, 2016

Our Session will focus on two areas: Requirements for sub-recipients that receive advance funding. Support for Indirect Costs.

Banking Requirements for Advanced Funding Interest Remittance under the new Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards Banking Requirements for Advanced Funding All advanced payments must be deposited and held in an interest bearing account unless one of the following applies: The non-federal entity receives less than $120,000 in federal awards per year. The best available interest bearing account would not expect to earn in excess of $500 per year on the federal cash balances. The depository would require an average or minimum balance so high that it would not be feasible within the expected federal and non-federal cash resources. A foreign government or banking system prohibits or precludes interest bearing accounts.

Remittance of Interest Earned Interest Remittance under the new Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards Remittance of Interest Earned Interest earned up to $500 per year on all federal funds may be retained by the non-federal entity for administrative expenses. Any additional interest earned on the advanced payments must be remitted annually to the Department of Health and Human Services at the following address: Department of Health and Human Services Payment Management System Rockville, MD 20852

Indirect Costs and their rates or plans Indirect Cost Support Indirect Costs and their rates or plans What is an indirect cost? What is an indirect cost rate or plan? Does the rate or plan used change the nature of the expenditure?

Approved Indirect Cost Rate Indirect cost Support Approved Indirect Cost Rate The following are various methods that can be used to determine your agency’s indirect cost rate: Simplified Allocation Methodology Multiple Allocation Methodology Direct Cost Methodology Special Indirect Cost Rate DCED will honor all indirect cost rates that have been negotiated and accepted by your cognizant agency. We will require the approval letter during the application process.

Indirect Cost Allocation Plan Indirect Cost Support Indirect Cost Allocation Plan DCED will allow the use of an indirect cost allocation plan. Those plans will be tested during regular monitoring visits.

Indirect cost support De Minimis Rate An agency can elect to charge the DCED grant a 10% De Minimis Rate of modified total direct costs as long as the following factors have been met: Never received a negotiated indirect cost rate. Cost must be consistently charged as either indirect or direct costs. May not be double charged. Agencies that elect to use the 10% De Minimis Rate will be required, during the application process, to submit which expenditures will be covered by the 10% De Minimis Rate.

Contact Information Contact Information for the Financial Management Center Invoicing and Financial Status Reports: Susan Wealand at (717) 787-7402 Monitoring Questions: Curt Long – (717) 720-7338 Janet Monismith – (717) 720-1359 Amy Dolphin – (717) 649-2535 Brad Shover – (717) 720-7391

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