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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Greetings ACFR Contacts,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">For those that are involved with indirect cost rate development, please see the information below regarding the ability to exclude CRF from those calculations.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Rob<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> Chebinou, Cornelia <cchebinou@nasact.org> <br>
<b>Sent:</b> Tuesday, November 30, 2021 10:58 AM<br>
<b>To:</b> NSAAAuditors <NSAAAuditors@nasact.org>; NASCComptrollers <NASCComptrollers@nasact.org>; StateTreasurers <StateTreasurers@nasact.org><br>
<b>Cc:</b> NSAAAuditorsCCs <NSAAAuditorsCCs@nasact.org>; NASCComptrollersCCs <NASCComptrollersCCs@nasact.org>; StateTreasurersCCs <StateTreasurersCCs@nasact.org>; Hutchko, Neal <nhutchko@nasact.org>; Poynter, R. Kinney <kpoynter@nasact.org><br>
<b>Subject:</b> Exception for Indirect Cost Rate Calculation related to Coronavirus Relief Fund<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">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. <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">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. <o:p>
</o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">For additional information and instructions on the application of this exception, please check the
<a href="https://ibc.doi.gov/ICS/icrna">Department of Interior</a> and the <a href="https://rates.psc.gov/">
Department of Health and Human Services</a> websites or contact their point of contacts as shown below.<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraphCxSpFirst" style="margin-left:0in;mso-add-space:auto;mso-list:l0 level1 lfo3">
Department of Interior: <o:p></o:p></li><ul style="margin-top:0in" type="circle">
<li class="MsoListParagraphCxSpMiddle" style="margin-left:0in;mso-add-space:auto;mso-list:l0 level2 lfo3">
Craig A. Wills, <a href="mailto:craig_wills@ibc.doi.gov">craig_wills@ibc.doi.gov</a>, 916-930-3828
<o:p></o:p></li><li class="MsoListParagraphCxSpMiddle" style="margin-left:0in;mso-add-space:auto;mso-list:l0 level2 lfo3">
DOI/IBC WEBSITE: <a href="https://ibc.doi.gov/ICS/icrna">https://ibc.doi.gov/ICS/icrna</a>
<o:p></o:p></li></ul>
<li class="MsoListParagraphCxSpMiddle" style="margin-left:0in;mso-add-space:auto;mso-list:l0 level1 lfo3">
Department of Health and Human Services Cost Allocation Services: <o:p></o:p></li><ul style="margin-top:0in" type="circle">
<li class="MsoListParagraphCxSpMiddle" style="margin-left:0in;mso-add-space:auto;mso-list:l0 level2 lfo3">
Janet Turner, <a href="mailto:janet.turner@psc.hhs.gov">janet.turner@psc.hhs.gov</a>, 415-437-7859<o:p></o:p></li><li class="MsoListParagraphCxSpLast" style="margin-left:0in;mso-add-space:auto;mso-list:l0 level2 lfo3">
HHS/CAS WEBSITE: <a href="https://rates.psc.gov/">https://rates.psc.gov/</a> <o:p>
</o:p></li></ul>
</ul>
<p class="MsoNormal"> <o:p></o:p></p>
<p> <o:p></o:p></p>
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