How you react will strongly influence the opinion of the auditor as to whether the refund fees requested are considered admissible or not. Clearly, it is extremely important to have the knowledge of the Federal Acquisition Regulation (FAR) Part 31 and the NIH Grants Policy Statement in order to have a successful negotiation. The third step is to use this calculation to forward your initial indirect cost proposal to your cognition agency. The indirect cost proposal is the documentation you prepare to support your right to reimbursement of indirect costs. This proposal forms the basis of the revision and negotiation leading to the setting of your organization`s indirect cost rate. The total costs required in your budget include eligible direct costs (based on contribution) plus eligible indirect costs. At the time of award, each budget period of the auction notice reflects the direct costs, the indirect costs incurred and, for SBIR/STTR premiums, a “profit” or a royalty (e.g. B 7%) I didn`t do it. The statutory auditor examines all the cost categories that make up your indirect rates and asks very detailed questions about the nature of the different expense items and how you obtained your assumptions. For example, how do you understand #IndirectCosts in terms of subsidies? Your #smallbusiness worked hard to get a prize (Congratulations!), but now it`s important to make the most of it. Many people do not know the value of negotiating a good indirect cost rate (CDI) for a subsidy and instead settle for the 10% minimum rate. And an IDC rate usually negotiated for a small business #innovation Research (SBIR) grant of the #NIH 40%! How did your company experience IDC rates? Can the information below help improve your CDI rate #negotiation process? #smallbusiness #finance #funding #negotiation #NIH #indirectcosts Since the auditor determines your indirect cost based on how you complete your financial information, we strongly advise you to consult us before sending it to the DFAS.
We can help you get the most out of your indirect cost rate and avoid possible pitfalls later on the street. Businesses that have non-contractual or sub-priced federal expenses as part of a federal premium (e.g. B grant or sub-subsidy) should submit an information package (Infopack). The IDC proposal should be based on company-wide cost data and be accompanied by the Indirect Cost Submission Checklist, which includes that collective bargaining between the company and the indirect cost department is usually conducted over the phone. Subsequently, an agreement rate is issued or a memo/letter rate is sent to the grant specialist. For small for-profit businesses (SBCs) and for-profit organizations, IDC rates are set by the NIH.