ICR for CNP Application of Indirect Cost Rate for the Federal Child Nutrition Programs – Part 1 Presented by Nicholas Dunford

What are indirect costs? Those costs that have been incurred for __________ ___________. These costs benefit _____ _____ _____ program. Identification with a single project would require effort _____________ to the results achieved. Examples?

What are direct costs? Those that can be identified specifically with a _______ cost objective. Examples?

Are all costs direct or indirect? NO ◦ OMB Circular A-87 defines certain costs as being ___________ and not to be used in the calculation of an indirect cost rate. Examples?

What is an indirect cost rate? A simplified means for distributing a ____ _____ of a subgrantee’s administrative costs to federal grants. The indirect cost rate is the ratio of the _______ costs to a ________ cost base. What guidance establishes rules on ICR?

Does every SFA have an ICR? NO ◦ Any SFA requesting an indirect cost rate from the ADE will be given one.

How does a SFA request an ICR? Check the ICR box ‘YES’ on the AFR. Where on the AFR? ◦ Pg. ___ Letter ___

What type of rate is it? ADE utilizes a _______ rate with a carry-forward provision.

What’s a fixed rate with carry forward provision? Estimate ______ period operations using current year data. Create rate based on those estimations. ◦ e.g. using SY2009 AFR to calculate SY2011 ICR. When SY2011 is done, compare _______ against estimated and difference is carried forward.

Can new SFAs get ICR? YES For the first two years, SFA will receive State average. After first two years, any differences will be adjusted using the _______ ________ provision.

Why a fixed rate with carry forward provision? Three-year period showed a wide variance in ICR from year to year. Carry forward provision attempts to include _______ _______.

How is ICR calculated? The Basic Formula Actual __________ Costs PlusCarry Forward Provision EqualsIndirect Cost Pool Total Indirect Cost Pool Total Divide by________ Cost Total EqualsFixed Rate Percentage with Carry Forward Provision

Restricted vs. Unrestricted? Restricted = ◦ __________ but not __________ grant requirement. Unrestricted = ◦ NO __________ but not __________ grant requirement.

ICR on all grants? NO ICR only on __________ grants that do not prohibit recovery. __________ grants do not contain ICR provisions.

Limitations on recovery of indirect cost? YES… 3 Major: ◦ 1) __________ Rate ◦ 2) Fund __________ ◦ 3) Direct Cost __________

How to apply ICR? Apply to _____ or _____ eligible projects. ◦ SFA discretion Apply max rate or less than max rate. ◦ SFA discretion ◦ If less than max, must be uniform.

What is max ICR? Maximum rate is the _______ of: ◦ Maximum ICR allowed by grant; OR ◦ ICR issued by ADE; OR ◦ Actual indirect costs Restricted max = ____.00% Unrestricted max = ____.00%

ICR good for what period? Applied to a specific ______ fiscal year. ◦ July 1 – June 30

Restrictions on indirect cost fund? NO Federal statutes do not restrict use of indirect cost funds.

Contact Info Gary Holland 1535 W JEFFERSON ST BIN# 19 PHOENIX, AZ (602)