Your institution's indirect cost rate is not determined/approved simply
because a federal agency accepted a requested rate on a submission.
There is a process that your institution has to undergo in order to
calculate and apply for a federally negotiated rate with HHS.  After the
institution  receives an approved federal rate from HHS through a Cost
Rate Agreement, you can use that same rate on all federal submissions,
unless there is an otherwise stated cap on IDC.  On the form, you would
answer that first question "no," because you do not yet have a Cost Rate
Agreement.  Even after your institution has a Cost Rate Agreement, you
are still confined to any caps that certain federal agencies place on
IDC, such as the 8% you refer to.  If you receive an award from Dept. of
Educ. that places that 8% cap on IDC, that's all you will get regardless
of what you request.

I hope this helps!

Kristy:)

Kristy Ford
Grant Management Manager
Office of Sponsored Programs/MHUMC
4750 Waters Ave. Suite 212
Savannah, GA  31404
(912)350-6379

>>> PD Lipscomb <xxxxxx@LMUNET.EDU> 9/17/2007 3:06 PM >>>
For anyone with patience, I have an IDC question.

I am new to my institution, and we do not have a negotiated IDC rate
with
HHS. I have been asked to certify our IDC rate with a simple form
provided to
the project director for an ED grant that was awarded. They have
received
the grant for the past several years, but this is the first time they
have been
asked for this type of information.

For the past several years we have been using 17.5%, which we
negotiated
with the National Park Service. This was before my time, so I don’t
know
if “negotiated” is the right word. However, they did use that same

rate "agreement" on a HRSA application that was recently funded
($818,000),
and it was accepted? So, since HRSA accepted the 17.5%, does that mean

HRSA can be considered a cognizant agency, or is it only HHS and ONR?
If so,
can I now use the HRSA grant as my new “agreement” since they have

accepted the rate?

The HRSA award is capped at 8%, and the Dept. of Ed/Student Support
Services award is capped at 8% - so which response is most
appropriate?

Should I just put no - since we don't have the agreement and the 8%
will be
awarded anyway?

Or, should I put pending and request a provisional rate from HHS? The
trouble
here is the certification form has to be returned by 10/1/07.

The verification form that I need to sign says:

1)      Do you have an Indirect Cost Rate Agreement approved by the
Federal
government? __________Yes ____________ No

Since it doesn’t say “cognizant agency”, what would be
appropriate?

2)      If yes, please provide the following information:

Period Covered by the Indirect Cost Rate Agreement:

From: ___________                To:______________

Approving Federal agency:        _________ED         ____________Other

(Please Specify)

Am I off track on this? What do you think?

Thanks so much for any input you might have!

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