“Indirect costs are those that have been incurred for common or joint objectives and cannot be readily identified with a particular final cost objective.”Ģ CFR 200, Subpart A, Section 200.56 defines Indirect (facilities & administrative (F&A)) costs for “Major nonprofit organizations”: Definition of Indirect Costs and Indirect Cost RateĪccording to 2 CFR 200, Subpart F, Appendix IV, Section A.1: Once a NICRA is issued, either by a Mission or M/OAA/CAS/OCC, this NICRA will apply to all Federal awards. If the foreign entity has an award issued from Washington, M/OAA/CAS/OCC will negotiate and issue the issuance of a NICRA. M/OAA/CAS/OCC provides support and guidance to Agreement Officers (AO) and Agreement Officer’s Representatives (AOR) at Missions regarding the negotiation of NICRAs as requested. The cognizant Mission initially negotiates, and subsequently updates, the NICRA on a company-wide basis not per grant/award. A foreign organization is an organization located in a country other than the United States that is a non-profit and tax exempt under the laws of its country of domicile and operation. Responsibility for the negotiation and issuance of NICRAs for foreign organizations, with no awards issued by USAID/Washington’s M/OAA, rests with the Mission (and handled by the Agreement Officer) providing the majority of the entities’ funding. Indirect Cost Rates Issued to Foreign NGOs and foreign organizations with awards issued by the Bureau for Management’s, Office of Acquisition and Assistance (M/OAA) in Washington, DC. M/OAA/CAS/OCC establishes Negotiated Indirect Cost Rate Agreements (NICRA) for U.S. The Overhead, Special Cost, and Closeout Branch (M/OAA/CAS/OCC), within the Cost Audit Support Division, Office of Acquisition and Assistance, within the Bureau for Management is the central unit authorized to negotiate indirect cost rates with concerns awarded contracts, grants or cooperative agreements by USAID. All Federal agencies are required to use the rates and methodology negotiated by USAID and the related organization. Agency for International Development (USAID) provides the majority of a non-profit organization’s Federal funding, it is the cognizant Federal agency for negotiating the organization’s indirect cost rates. General Information Overhead, Special Cost and Closeout Branch Also, added “personnel activity reporting system” to the paragraph under the “Approved date”.Īdded to the last paragraph additional information from the 2 CFR 200.430 (i) addressing the standards for documentation of personnel expenses. Title changed on 3.B from “Time Distribution Report” to “Personnel Activity Report”. “Example – Personnel Cost Worksheet” regarding “timesheet” with comments from the 2 CFR 200 addressing the use of records to support the work performed. in the “Indirect Cost Rate Proposal (ICR) Checklist for First Time NICRA” comments on documentation to be provided by small business to support the proposed indirect cost rate. Title changed in the section 3.B of the Table of Contents from “Time Distribution Report” to “Personnel Activity Report”Īdded to item 7. The administrative requirements and cost principles apply to new awards authorized on or after December 26, 2014.Īs of Novemthe following changes have been made to the OCC Guide for Non-Profit Organizations. The Office of Management and Budget (OMB) published Title 2 of the Code of Federal Regulations Part 200 (2 CFR 200), titled “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” to streamline the Government-wide guidance on Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards. This Indirect Cost Rate Guide (Guide) has been prepared to assist non-profit organizations to understand the requirements for the determination of indirect cost rates for application on cost reimbursable grants and other agreements awarded by the United States Agency for International Development (USAID).
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