[ACFR-contacts-news] FW: Exception for Indirect Cost Rate Calculation related to Coronavirus Relief Fund

[HAMILTON Robert W * DAS]

Greetings ACFR Contacts,

For those that are involved with indirect cost rate development, please see the information below regarding the ability to exclude CRF from those calculations.

Rob

From: Chebinou, Cornelia <cchebinou at nasact.org>
Sent: Tuesday, November 30, 2021 10:58 AM
To: NSAAAuditors <NSAAAuditors at nasact.org>; NASCComptrollers <NASCComptrollers at nasact.org>; StateTreasurers <StateTreasurers at nasact.org>
Cc: NSAAAuditorsCCs <NSAAAuditorsCCs at nasact.org>; NASCComptrollersCCs <NASCComptrollersCCs at nasact.org>; StateTreasurersCCs <StateTreasurersCCs at nasact.org>; Hutchko, Neal <nhutchko at nasact.org>; Poynter, R. Kinney <kpoynter at nasact.org>
Subject: Exception for Indirect Cost Rate Calculation related to Coronavirus Relief Fund

Good afternoon.  The US Departments of Health and Human Services and Interior have announced that pursuant to its authority under 2 CFR 200.102(a) the Office of Management and Budget (OMB) has approved a class exception to 2 CFR 2 C.F.R. § 200.405(b), Allocable Costs.  The exception allows the tribal, state and local governments to exclude from the direct cost base in the indirect cost rate calculation any funds from the Coronavirus Relief Fund (CRF)that deny indirect cost recovery.

The CARES Act established the $150 billion CRF, which does not allow for Federal reimbursement of indirect costs.  The CRF distributed $8 Billion to 709 tribal governments and $142 Billion to all 50 states, 171 local governments with populations exceeding 500,000, the District of Columbia, and the U.S. Territories (the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands).  OMB received requests from tribal and state and local government representatives that received CARES Act CRF funds to exclude from the computation of indirect cost rates all the CARES Act CRF funding that do not allow the recovery of indirect costs, since including them would result in unintended reductions to the actual amount of indirect cost of funding received by these entities.

For additional information and instructions on the application of this exception, please check the Department of Interior<https://ibc.doi.gov/ICS/icrna> and the Department of Health and Human Services<https://rates.psc.gov/> websites or contact their point of contacts as shown below.


  *   Department of Interior:
     *   Craig A. Wills, craig_wills at ibc.doi.gov<mailto:craig_wills at ibc.doi.gov>, 916-930-3828
     *   DOI/IBC WEBSITE: https://ibc.doi.gov/ICS/icrna
  *   Department of Health and Human Services Cost Allocation Services:
     *   Janet Turner, janet.turner at psc.hhs.gov<mailto:janet.turner at psc.hhs.gov>, 415-437-7859
     *   HHS/CAS WEBSITE: https://rates.psc.gov/



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