Indirect Cost Basics for Tribal Organizations

If you need to understand how indirect costs work but don’t have an in-depth accounting background, you’re not alone. If you answer “yes” to any of these questions, this is the class is for you: Are you confused by all the terms surrounding the administration of contract support? Do you want to understand how indirect costs impact tribal programs? Would you like to know how your program is charged and how much? Want to know what flow through and pass through mean? Would you like to be able to determine if a program is fairly charged? Want to see how the indirect cost rate is calculated? You’ll learn the answers to these and many more questions during this class, designed specifically for the person who is not an expert but wants to know how it all works, including how contract support issues impact programs and services managed by the organization.

This basic program will unravel the mystery behind all the terms you always hear being tossed around but don’t know what they mean. By the end of the program you’ll have the confidence to ask the right questions and know if you’re receiving the proper responses. If you’re an elected official, program manager, tribal administrator or administrative assistant, plan to attend and be taught in terms that are easy to understand. You’ll return to the job with renewed confidence and understanding of what administrative costs are all about.

T O P I C S   I N C L U D E
Understanding the Terms
  • Indirect cost
  • Contract support
  • Pass through
  • Flow through
  • The base
  • The pool
  • Exclusions
  • Over-recovery
How IDC Rate is Calculated
  • Learn how simple it really is
  • Different examples for non-accountants
  • How you can determine what your program should pay
Indirect Costs vs. Contract Support
  • Where these terms come from
  • Differences under P.L. 93-638 contracts and compacts
  • How the system impact non P.L 93-638 programs
Impact on Grants
  • Knowing what funding agencies consider administrative costs
  • How the indirect cost rate impacts grant funding
  • What the rate means to your budget
  • Why some grants do not pay
How Indirect Cost Proposals are Developed
  • The pool budget
  • How and why a particular base is chosen
  • Who approves the tribe's indirect cost rate?
Easy Overview of Federal Laws and Regulations that Govern the Process
  • P.L. 93-638 Indian Self-Determination Act
  • OMB Super Circular
  • ASMBC 10
Famous Court Decisions Impacting Contract Support
  • Navajo Health Foundation-Sage Memorial Hospital, Inc. v. Burwell
  • Ramah v. Salazar
  • Cherokee v. Levitt
Identifying Common Indirect Cost Problems
  • Timekeeping systems
  • Consistent treatment and specific identification of costs
  • Costs of "unallowable activities" credits
  • Indirect cost allocation base
  • Expressly unallowable costs
  • Inter-organizational transfers and related-party transactions
  • Lease incentives and advance understandings
  • Budget limitations unsupported

Guidelines for Preparing Indirect Cost Rate Proposals

  • Basics of preparing a proposal
  • Documents supporting the proposal
  • Proposal checklist
  • Proposal filing instructions from the Department of the Interior
  • Submission timeframes
  • Proposal submission FAQ’s

*Topics subject to change.

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