Why I Should Attend?
Module 4 is a specialized course that provides for a greater understanding of governmental accounting principles, with a special focus on administrative, or overhead costs commonly referred to as “indirect costs”. Tribes, tribal organizations, universities, hospitals and non-profit organizations all incur administrative costs as a part of administering programs. The manner in which they recover their costs is through a negotiated indirect cost rate agreement. Tribes and tribal organizations have all experienced difficulties throughout the years for not receiving their full entitlement to indirect costs. Some Federal agencies do not pay indirect costs; while other agencies have statutory limitations for paying the full indirect costs. The Bureau of Indian Affairs and Indian Health Service have also not provided full funding for tribal indirect costs resulting in a number of class-action lawsuits by tribes and tribal organizations. The most recent is the Salazar vs Ramah Navajo Chapter (Oglala Sioux Tribe and the Pueblo of Zuni) lawsuit where the U.S. Supreme Court ordered the Bureau of Indian Affairs and the Indian Health Service to provide full indirect cost funding.
The Act requires that tribes and tribal organizations are entitled to full “Secretarial Funding Levels” for direct and indirect costs. Contract Support Costs is a term that refers to several pools of funds that provide funding for tribal indirect cost rates, direct contract support costs, start-up funds, and pre-award funds under the Act.
This course provides a special presentation and explanation of the statutory funding provisions of the Act regarding direct and indirect cost funding. It also provides instruction on the Contract Support Cost policies of the Bureau of Indian Affairs and Indian Health Service. KIVA developed a special guidance memorandum on how to apply Contract Support Costs to their agreements under the Act. The guidance memorandum provides instruction on how tribes can calculate their Direct Contract Support Cost to add to their compacts and contracts.
KIVA provides an easy-to-understand instruction on indirect cost rates and how indirect cost rates work. The training explains the concepts of an indirect cost pool, versus the direct cost base; and explains the different types of indirect cost rates. Training emphasizes that preparing an indirect cost rate requires careful thought on how tribal governments are organized; and how it is important to correctly classify costs (cost allocation) that would lead to full recovery of indirect costs.
KIVA presents this course in an easy to understand manner, but KIVA provides key accounting concepts of an indirect cost rates work; and how such rates apply under Self-Determination contracts as compared to how rates apply to discretionary grant programs. This course should be required for all Awarding Officials and their subordinates.