The term “indirect cost” is one of the most misunderstood in the lexicon of federal fund management. And the misunderstanding, while not malicious, is widespread. Start with many members of Congress who routinely assume that indirect costs and administrative costs are the same thing. They have been known to pontificate about the wisdom of capping indirect costs as a way to make federal programs “lean and mean.” Members of the media frequently assert that having a high indirect rate (whatever that might be) detracts from efficiency, effectiveness and program results.
Misconceptions about indirect costs are also alive and well among officials of federal awarding agencies and pass-through entities, as well as recipient and subrecipient organizations. A key reason is that many people have acquired their knowledge about the concept and the related federal policies in a haphazard way. Statements like “that’s what we were told” or “that’s what the feds require” unfortunately abound and are often misinformed. There are even a few folks who maintain that the topic is so complex that it can only be understood and managed by a select few — like them!
This webinar has been organized to set “urban legends” to rest and to explain federal requirements for indirect cost recovery in clear laymen’s terms. It is particularly suited for groups of participants who represent different units in the same organization — such as program management, finance and administration, legal and human resources.
Here’s what we will cover:
- The real distinctions between direct and indirect costs
- The folly of comparing indirect cost rates among organizations
- The federal cognizant agency concept — why that’s important
- The varying procedures that the federal government prescribes for indirect cost recovery
- Reinforced federal rules for mandatory acceptance of negotiated indirect cost rates
- Differing requirements related to indirect cost recovery by subrecipients
- The various types of indirect cost rates, and how they are adjusted
- How indirect costs are budgeted in grant applications and claimed on grant financial reports
- When it’s appropriate to have more than one rate
BOB LLOYD, principal of Federal Fund Management Advisor™, will conduct this informative session. Among his extensive consulting engagements was service under contract to the U.S. Department of Health and Human Services to develop one of the key guidebooks on development of indirect cost rate proposals by recipients and subrecipients.
Who Should Attend:
- Grant and contract managers
- Sponsored programs administrators
- Principal investigators and other research staff
- Legal counsels
- Finance directors
- Purchasing managers
- Federal program managers
- Accounting staff
Hand-out Materials:
Attendees will receive presentation slides as well as access to background materials.
Allowable Charges
The costs of webinars sponsored by Federal Fund Management Advisor™ are allowable charges to your federal grants and subgrants. The cost principles issued by OMB under its uniform guidance (and applicable to all types of awardees) state, “The cost of training and education for employee development is allowable” (2 CFR 200.472).
Attend this Live Webinar and Earn up to 1.5 CPE Credits
Federal Fund Management Advisor™ is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.