Provider has Indirect Cost Rate Approved

If a provider has an Indirect Cost Rate approved by their Federal Cognizant agency then DHS will accept that rate under the following conditions:

  • The approved rate includes DHS' grant(s);
  • The provider must submit a copy of the approved plan and a copy of the approval letter;
  • The provider must complete the short form budget for FY13 and the CFR budget for FY14 that includes indirect costs based on the methodology approved by the federal government.

Provider Does Not Have an Indirect Cost Rate Approved

If the provider does not receive funding as a primary recipient from the federal government and therefore does not have an approved indirect cost rate, then the provider must submit an indirect cost plan in accordance with federal regulations. This requires the indirect costs to be prepared in accordance with the OMB Circular A-122 for both profit and non-profit entities. A sample of the Indirect Cost Proposal Format is accessible on DHS' website. The submission package must include:

  • A copy of the Indirect Cost Proposal (Sample below)
  • A copy of the checklist
  • Sign certifications (included in the example proposal)
  • A copy of the prior year audited financial statements (if these statements were submitted to DHS as part of the requirements from last year, then you do not need to resubmit)
  • A copy of the 990 for the prior year that can be traced audited statements above, or if an audit was not required a copy of the prior year 990.
  • A contact person, name and phone number

Forms