**SAMPLE PROPOSAL -- NON-PROFIT**

**This is a short, simplified sample of an Indirect Cost Proposal. Using
this type of format, or a similar one, would enable the National
Business Center to expedite the negotiation of your indirect cost
rate.**

**Information and examples used in this proposal are fictitious and
represent no particular organization.**

**This is an example only.**

**If your accounting year, cost elements, or other information differs
from the example, appropriate changes are necessary.**

Indirect Cost Services

Acquisition Services Directorate

National Business Center

U.S. Department of the Interior

2180 Harvard Street, Suite 430

Sacramento, California 95815-3319

Telephone (916) 566-7111

Fax (916) 566-7110

E-mail: <ics@nbc.gov>

Website: <http://www.aqd.nbc.gov/ics>

**Sample Indirect Cost Proposal for Non-profit Organizations**

"Name of Organization" (EIN: 02-9876543)

1234 Front Street

Anytown, State 95668-1111

Tel: (123) 456-7890

Fax: (123) 456-7891

Website: [http://www.non-profit.org](http://www.nonprofit.org/)

Contact Person(s): Robert Smith, Executive Director Email:
[rsmith@non-profit.org](mailto:rsmith@nonprofit.org)

Andrea Brown, Finance Officer Email:
[abrown@non-profit.org](mailto:abrown@nonprofit.org)

**A. INTRODUCTION**

\"*Name of Organization*\" is a non-profit located in Anytown, State.
The non-profit administers a variety of programs funded by Federal,
State, and Local agencies. These programs include Community Service
programs, Head Start programs, State Source Reduction Assistance
Programs, Pollution Prevention Grants, and Environmental Policy and
Innovation Grants. (This example assumes a June 30 fiscal year-end.
Non-profits can have different year ends and should use their year end
when preparing indirect cost proposals).

**B. TYPE OF RATE AND TIME PERIOD**

We are requesting to negotiate the following indirect cost rates (check
all that apply and provide dates):

> \(a\) [Final Indirect Cost Rate]{.underline} for the fiscal year
> ending [June 30, 2006]{.underline}.
>
> \(b\) [Provisional Indirect Cost Rate]{.underline} for the fiscal year
> ending [June 30, 2008]{.underline} based on the same Final Indirect
> Cost Rate above. (A separate proposal is not necessary.)
>
> \(c\) [Provisional Indirect Cost Rate]{.underline} for the fiscal
> year(s) ending \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ based on
> budget estimates. A separate proposal and/or separate schedules are
> provided.
>
> \(d\) Other:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**C. NEGOTIATION HISTORY**

> \(a\) We have received an official written approval of our indirect
> cost rate from National Business Center, Department of the Interior.
>
> \(b\) This is our [initial request]{.underline} for the approval of
> our indirect cost rate. None of the federal agencies have ever
> officially approved of our rate through a signed negotiation
> agreement.
>
> \(c\) We have received an official written approval of our indirect
> cost rate from U.S. Department of \_\_\_\_\_\_(fill in the
> blank)\_\_\_\_\_\_\_ (other than National Business Center, Department
> of Interior). Attached you will find our **3** most recent signed
> indirect cost rate agreements. (Only required for first-time
> negotiations.)

**D. COST ALLOCATION METHODOLOGY**

**Elements of Cost (see Schedule A)**: This proposal addresses all
elements of cost incurred by \"*Name of Organization*\" and identifies
shared costs that require allocation. The non-profit treats all costs as
direct costs except general administration and other indirect expenses.
Joint costs are prorated individually as direct costs to each category
and to each award using a base most appropriate to the particular cost
being prorated. Therefore, the direct allocation method has been used in
allocating indirect costs. Each category of non-salary expenditures has
been analyzed based on the facts, and Schedule A shows the allocation
between Direct costs and Administrative Services (Indirect) Pool.

**E. DIRECT COSTS**

Direct costs are costs that can be identified specifically with a
project and therefore are charged to that project. The accounting system
records these costs as they are incurred within the series of accounts
assigned for that purpose. Further distribution is not required. The
\"*Name of Organization*\" maintains adequate internal controls to
insure that no cost is charged both directly and indirectly to Federal
contracts or grants.

**F. INDIRECT COSTS**

Indirect costs are costs incurred for common or joint objectives and
therefore cannot be readily and specifically identified with a
particular direct project or activity. These costs are grouped into
common pool(s) and distributed to benefiting activities by a cost
allocation process. **See Schedule B "Indirect Salaries, Wages and
Fringes."**

**G. COST POOL AND BASE FOR DISTRIBUTION**

The non-profit has created an Administrative Services (Indirect) Pool
consisting of salaries, fringe benefits, and other indirect costs. The
Administrative Services (Indirect) Pool is charged with all the indirect
costs as defined above. The pool is distributed to the various program
activities on the following basis (check applicable base).

+-----+----------------------+---------+------+----------------------+
|   - | Indirect Cost Pool   | \$      |      |                      |
| --- |                      | 347,392 | ---- |                      |
| --- |                      |         | ---- |                      |
|     |                      |         |   31 |                      |
|  ** |                      |         | .26% |                      |
| X** |                      |         |      |                      |
|     |                      |         |      |                      |
|   - |                      |         | ---- |                      |
| --- |                      |         | ---- |                      |
| --- |                      |         |      |                      |
+-----+----------------------+---------+------+----------------------+
|     | Base (Direct         | \$1,    |      | [Please              |
|     | Salaries & Wages,    | 111,343 |      | Note]{.underline}    |
+-----+----------------------+---------+------+----------------------+
|     | [ex                  |         |      |                      |
|     | cluding]{.underline} |         |      |                      |
|     | fringe benefits)     |         |      |                      |
+-----+----------------------+---------+------+----------------------+
|     | Indirect Cost Pool   | \$      |      | These are typical    |
|  -- |                      | 347,392 | ---- | examples of the      |
|     |                      |         | ---- | distribution bases   |
|     |                      |         |   26 | used to calculate    |
|  -- |                      |         | .45% | Indirect Cost Rates. |
|     |                      |         |      |                      |
|     |                      |         |      |                      |
|     |                      |         | ---- |                      |
|     |                      |         | ---- |                      |
+-----+----------------------+---------+------+----------------------+
|     | Base (Direct         | \$1,    |      |                      |
|     | Salaries & Wages,    | 313,562 |      |                      |
+-----+----------------------+---------+------+----------------------+
|     | [in                  |         |      |                      |
|     | cluding]{.underline} |         |      |                      |
|     | fringe benefits)     |         |      |                      |
+-----+----------------------+---------+------+----------------------+
|     | Indirect Cost Pool   | \$      |      | Please select the    |
|  -- |                      | 347,392 | ---- | one that provides    |
|     |                      |         | ---- | the most equitable   |
|     |                      |         |   14 | distribution.        |
|  -- |                      |         | .59% |                      |
|     |                      |         |      |                      |
|     |                      |         |      |                      |
|     |                      |         | ---- |                      |
|     |                      |         | ---- |                      |
+-----+----------------------+---------+------+----------------------+
|     | Base (Modified Total | \$2,    |      |                      |
|     | Direct Costs,        | 380,528 |      |                      |
+-----+----------------------+---------+------+----------------------+
|     | excluding capital    |         |      | Only select the      |
|     | expenditures,        |         |      | method used by your  |
|     | subawards in excess  |         |      | organization.        |
|     | of \$25,000, and     |         |      |                      |
|     | passthrough funds)   |         |      |                      |
+-----+----------------------+---------+------+----------------------+
|     | Indirect Cost Pool   | \$      |      | Do not change the    |
|  -- |                      | 347,392 |  --- | distribution base    |
|     |                      |         | ---- | without prior        |
|     |                      |         | ---- | approval from the    |
|  -- |                      |         | ---- | cognizant federal    |
|     |                      |         |   \  | agency.              |
|     |                      |         | _\_\ |                      |
|     |                      |         | _\_\ |                      |
|     |                      |         | _\_% |                      |
|     |                      |         |      |                      |
|     |                      |         |      |                      |
|     |                      |         |  --- |                      |
|     |                      |         | ---- |                      |
|     |                      |         | ---- |                      |
|     |                      |         | ---- |                      |
+-----+----------------------+---------+------+----------------------+
|     | Base (Other --       | \$\     |      |                      |
|     | Please describe)     | _\_\_\_ |      |                      |
|     |                      | \_\_\_\ |      |                      |
|     |                      | _\_\_\_ |      |                      |
+-----+----------------------+---------+------+----------------------+

Volunteers are included in the direct salaries total because they
benefited significantly from services provided by the indirect cost
pool. The total direct salaries and wages on which this proposal is
based is \$1,111,343 which includes \$99,230 of volunteer salaries and
wages for the program. Volunteers involved in any direct activity of the
organization should be included in the direct salaries base assuming
they meet the requirements outlined in 2 CFR 230 Appendix B, Section 12.

**H. SUPPORTING FINANCIAL STATEMENTS**

The Schedule of Total Expenditures (Schedule C) contained in this
proposal agrees with the non-profit\'s audit report, Statement of
Functional Expenses, or IRS Form 990, as applicable.

NOTE: Non-profit must include a complete copy of the audited financial
statements with their proposal submission. For organizations that do not
require an audit because federal expenditures are less than \$500,000,
attach a complete signed copy of the IRS Form 990.

**I. DESCRIPTION OF ACCOUNTING SYSTEM**

{SAMPLE -- Adjust to fit your organization} The \[non-profit entity\]
uses a \[modified accrual\] system of accounting. Under the \[modified
accrual\] basis of accounting, revenues are recognized when susceptible
to accrual (i.e. when they become both measureable and available).
"Measurable" means the amount of the transaction can be determined, and
"available" means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period. A
one-year availability period is used for revenue recognition for all
federally-funded revenue. Expenditures are recorded when the related
liability is incurred.

We have [not]{.underline} made any significant changes \[or We have made
significant changes\] during the proposal fiscal year (1) to our
accounting system, or (2) to the definition or to the accounting
treatment of any expense category (e.g. a change in building/equipment
costing methodology, capitalization level, or a change in charging an
expense from direct to indirect or visa versa). Note: Changes in the
allocation methodology should be identified here as well as reported on
the Element of Costs (Schedule A). See Section D above.

**J. INDIRECT SALARIES**

**See Schedule B** for a listing of the positions who comprise the
Administrative Services (Indirect) Pool. These positions are charged the
applicable percentage to Administrative Services in the indirect cost
pool.

If the indirect percentage for any employee is less than 100%, please
include a description of the non-profit's timekeeping system as
requested on Schedule B footnote 2. According to 2 CFR 230 Appendix B
Subsection 8.m.(1), "Charges to awards for salaries and wages, whether
treated as direct costs or indirect costs, will be based on documented
payrolls approved by a responsible official(s) of the organization. The
distribution of salaries and wages to awards must be supported by
personnel activity reports, as prescribed in subparagraph 8.m.(2) of
this appendix."

Please note: According to the National Institutes of Health Office of
Extramural Research's website
(<http://grants.nih.gov/grants/policy/salcap_summary.htm>), there is a
salary cap on Executive Level pay that is allowed to be in the
computations. THIS DOES NOT AFFECT HOW MUCH THE ORGANIZATION CAN PAY
THEIR EMPLOYEES. Rather, it is a cap placed on how much of the
employee's salary and related fringe that can be included in the direct
base and indirect cost pool. The organization may pay an individual's
salary amount in excess of the salary cap using nonfederal funds.

**K. PAID ABSENCES CERTIFICATION**

See attached Statement of Treatment of Paid Absences- Required for first
year submission only and in successive proposals when revised.

**L. MISCELLANEOUS - UNALLOWABLE/EXCLUDABLE COSTS AND ALLOCABLE COSTS**

[Unallowable/Excludable]{.underline} - The following costs are
determined to be unallowable costs: fundraising^1^, entertainment, fines
and penalties, bad debts, and food costs. The following are considered
excludable costs: capital expenditures greater than \$5,000 and the
portion of subawards/subcontracts given out that are greater than
\$25,000 (see section L for subaward listing^2^).

^1^ Certain advertising, public relations, fundraising, and lobbying
costs are unallowable as either a direct or indirect cost. However, such
costs \"must be treated as direct costs for purposes of determining
indirect cost rates and be allocated their share of the organization\'s
indirect costs if they represent activities which include the salaries
of personnel, occupy space, and benefit from the organization\'s
indirect costs.\" (Ref: 2 CFR 230 Appendix A Section B.3.)

^2^ The exclusion for subawards applies only when the distribution base
is Modified Total Direct Costs (MTDC). Other allocation bases such as
direct salaries & wages (including or excluding fringes) do not require
the subaward information.

[Allocable]{.underline} -- Depreciation and Occupancy costs (e.g. rent,
utilities, telephone, insurance, and maintenance expenses) are allowable
as either direct and/or indirect costs. According to the cost
principles, "Where an organization has several major functions which
benefit from its indirect costs in varying degrees, allocation of
indirect costs may require the accumulation of such costs into separate
cost groupings." (2 CFR 230 Appendix A, Subsection D.1.b) Under the
simplified allocation method, "Where an organization's major functions
benefit from its indirect costs to approximately the same degree, the
allocation of indirect costs may be accomplished by separating the
organization's total costs for the base period as either direct or
indirect." (2 CFR Appendix A, Subsection D.2.a)

\- Depreciation -- Are any depreciated line items used exclusively by a
specific program or by direct-related personnel? The only items that
should be included in the indirect cost pool are those that benefit all
activities of the organization, cannot be readily identified to a
particular final cost objective, and purchased using non-federal funds.
Since depreciation is an allowable expense, we recommend that
organizations allocate the depreciation between direct and indirect, if
possible.

\- Occupancy costs -- How are the physical spaces laid out? Is there a
floor plan that identifies space occupied by direct program personnel
and by administrative (indirect) functions? Is the total space evenly
characterized between direct and indirect activities, or is the
separation of program and administrative personnel distinct and unevenly
distributed in proportion to one another? These are some of the
questions to consider in whether or not it would be fair and equitable
to allocate the occupancy expenses and only include the occupancy
expenses for common areas in the indirect cost pool.

Acceptable methodologies for allocating depreciation and occupancy costs
include:

\- actual usage -- for depreciation, equipment can be tied directly to a
direct program or indirect-related personnel; for occupancy, a floor
plan has been prepared which identifies space occupied by direct
personnel, by indirect personnel, and common-use areas.

\- on the basis of either the employees and other users on a full-time
equivalent (FTE) basis or salaries and wages of those individual
functions benefiting from the use of the equipment or from the use of
that space;

\- on the basis of organization-wide employee FTEs or salaries and wages
applicable to the benefiting functions of the organization.

Reference: 2 CFR 230 Appendix A, Subsection D.3.c

**M. subaward listing**

  --------------- -------------- ------------ ------------ ---------------- ------------- ------- -------------
                                                           **Multi-year**                         

                  **Subaward**   **Total      **Amount**   **Awards:**      **Allowable           **Amount to**
                                 Amount**                                   as**                  

  ** **           **Name**       **of         **Spent in   **FY 06 is       **Direct      ** **   **Exclude**
                                 Subaward**   FY 06**      year**           Costs**               

  1               Subaward A     \$26,000     \$26,000     1 of 1           \$25,000              \$1,000

  2               Subaward B     \$25,000     25,000       1 of 1           25,000                0

  3               Subaward C     \$100,000    20,000       1 of 5           20,000                0

  4               Subaward D     \$75,000     25,000       2 of 3           0             \*      25,000

  5               Subaward E     \$55,000     55,000       1 of 1           25,000                30,000

  6               Subaward F     \$200,000    60,000       1 of 4           25,000                35,000

  7               Subaward G     \$15,000     15,000       1 of 1           15,000                0

  8               Subaward H     \$10,000     10,000       1 of 1           10,000                0

  9               Subaward I     \$45,000     45,000       1 of 1           25,000                20,000

  10              Subaward J     \$525,000    105,000      3 of 5           0             \*      105,000

                                              \$386,000                     \$170,000             \$216,000

                                                                                                  

  \* Only the                                                                                     \$386,000
  first \$25,000                                                                                  
  of each                                                                                         
  subgrant or                                                                                     
  subcontract is                                                                                  
  allowable                                                                                       
  (regardless of                                                                                  
  the period                                                                                      
  covered by the                                                                                  
  subgrant or                                                                                     
  subcontract).                                                                                   

                                                                                                  check figure
  --------------- -------------- ------------ ------------ ---------------- ------------- ------- -------------

**N. CAPITAL THRESHOLD AND DEPRECIATION SCHEDULE**

The established capital threshold for capitalizing equipment is \$5,000.
Capital threshold is the dollar value above which asset acquisitions are
added to the capital asset accounts and depreciated over the period of
useful service (useful life). Please attach a depreciation schedule that
identifies those items included as indirect costs (\$6,774) and shows
the item name, purchase date, term, and amount. Any portion of the cost
borne by or donated by the federal government is excluded.

**O. SCHEDULE OF FINANCIAL ASSISTANCE**

See Schedule D.

**P. FEDERAL PERCENTAGE**

See Schedule C. This is the estimated percentage of federal funding used
in the distribution base of the indirect cost rate calculations. (Note:
This information is for NBC internal purposes only and has no impact on
the indirect cost rate.)

**Q. ORGANIZATION CHART**

See Schedule E.

**R. CERTIFICATION OF INDIRECT COSTS [AND]{.underline} LOBBYING COST
CERTIFICATE**

See Attached.

**S. Non-profit status verification**

Attached you will find our IRS letter granting non-profit status
(required for first year submission only).

**Schedule A -- Elements of Cost {adjust to fit your organization}**

  ------------------------------- --- -----------------------------------
  **Elements of Cost**                **Methodology of Allocation**

                                       

  Contractual services                Actual usage

                                       

  Depreciation / use allowance        Direct and Indirect cost

                                       

  Emergency assistance payments       Direct cost

                                       

  Equipment rental and                Rental and maintenance on equipment
  maintenance                         used in central office finance
                                      office

                                       

  Equipment / capital                 Purchasing of office furniture for
                                      use in performing administrative
                                      services

                                       

  Equipment / minor                   Actual usage

                                       

  Insurance                           Actual usage

                                       

  Occupancy                           Central office repairs and
                                      utilities on basis of square
                                      footage used for administrative
                                      services

                                       

  Office supplies                     Office and janitorial supplies for
                                      administrative and program services

                                       

  Other expenses                      Based on administrative services
                                      actual use

                                       

  Postage                             Actual usage

                                       

  Printing                            Actual usage

                                       

  Professional fees                   Accounting and audit services,
                                      payroll processing services,
                                      charged on work performed for
                                      administrative services

                                       

  Program materials                   Direct cost

                                       

  Program supplies                    Charged to project as costs are
                                      incurred; direct cost

                                       

  Renovations and improvements        Direct cost

                                       

  Telephone                           Basic services allocated on number
                                      of instruments, toll calls charged
                                      on basis of logs of such calls for
                                      administrative services

                                       

  Travel                              Actual usage
  ------------------------------- --- -----------------------------------

The methodologies used in this example are [not]{.underline} recommended
methodologies. They are used for demonstration purposes only. Allocation
of costs should be accomplished on a cost benefit basis. This cost
benefit can be different from one non-profit to the next. Any change in
the allocation methodology (from the prior year) should be explained.
Also, include explanatory information for individual cost elements as
shown above.

**Schedule B -- Indirect Salaries, Wages and Fringes**

+-----------------+---------+------+---------+-------+---------------+
| **Titl          | *       | **%  | *       | **    | **Comments**  |
| e/Description** | *Actual | In   | *Actual | Propo |               |
|                 | FY 2006 | dire | FY 2006 | sed** |               |
|                 | Expen   | ct** | I       |       |               |
|                 | ditures |      | ndirect | **FY  |               |
|                 | 1/**    | **   | Cost    | 2008  |               |
|                 |         | 2/** | Pool**  | Ind   |               |
|                 |         |      |         | irect |               |
|                 |         |      |         | Co    |               |
|                 |         |      |         | sts** |               |
+-----------------+---------+------+---------+-------+---------------+
|  Salaries:      |         |      |         |       |               |
+-----------------+---------+------+---------+-------+---------------+
| Executive       | \       | 100% | \       | \$4   | Estimated     |
| Director        | $49,754 |      | $49,754 | 9,754 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Deputy Director | 30,664  | 100% | 30,664  | 3     | Estimated     |
|                 |         |      |         | 0,664 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Admin Assistant | 21,566  | 100% | 21,566  | 2     | Estimated     |
| to Exec Dir     |         |      |         | 1,566 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Admin           | 17,087  | 100% | 17,087  | 1     | Estimated     |
| Secty/Pers      |         |      |         | 7,087 | same as FY    |
| Officer         |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Finance Officer | 26,484  | 100% | 26,484  | 2     | Estimated     |
|                 |         |      |         | 6,484 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Bookkeeper      | 20,797  | 100% | 20,797  | 2     | Estimated     |
|                 |         |      |         | 0,797 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Bookkeeper      | 34,430  | 50%  | 17,215  | 1     | Estimated     |
|                 |         |      |         | 7,215 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Boo             | 31,120  | 50%  | 15,560  | 1     | Estimated     |
| kkeeper/Payroll |         |      |         | 5,560 | same as FY    |
| Clerk           |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Custodian       | 11,744  | 25%  | 2,936   | 2,936 | Estimated     |
|                 |         |      |         |       | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Receptionist    | 14,232  | 100% | 14,232  | 1     | Estimated     |
|                 |         |      |         | 4,232 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Subtotal        |         |      | 216,295 | 21    |               |
| Salaries 3/     |         |      |         | 6,295 |               |
+-----------------+---------+------+---------+-------+---------------+
|                 |         |      |         |       |               |
+-----------------+---------+------+---------+-------+---------------+
| Fringe Benefits |         |      |         |       |               |
| on Above Sal:   |         |      |         |       |               |
+-----------------+---------+------+---------+-------+---------------+
| FICA            | 93,971  |      | 16,546  | 1     | Estimated     |
|                 |         |      |         | 6,546 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| State           | 6,503   |      | 1,145   | 1,145 | Estimated     |
| Unemployment    |         |      |         |       | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Health/Life     | 127,638 |      | 22,474  | 2     | Estimated     |
| Insurance       |         |      |         | 2,474 | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Retirement Plan | 17,322  |      | 3,050   | 3,050 | Estimated     |
|                 |         |      |         |       | same as FY    |
|                 |         |      |         |       | 2006          |
+-----------------+---------+------+---------+-------+---------------+
| Subtotal Fringe |         |      | 43,215  | 4     |               |
| Benefits 3/     |         |      |         | 3,215 |               |
+-----------------+---------+------+---------+-------+---------------+
|                 |         |      |         |       |               |
+-----------------+---------+------+---------+-------+---------------+
| Total Indirect  |         |      | \$      | \$34  |               |
| Salaries, Wages |         |      | 347,392 | 7,392 |               |
| and Fringes     |         |      |         |       |               |
+-----------------+---------+------+---------+-------+---------------+
|                 |         |      |         | 4/    |               |
+-----------------+---------+------+---------+-------+---------------+

1/ Actual expenditures are reconcilable to the audited financial
statements, the General Ledger, and/or other supporting documentation.

2/ If the indirect percentage for any employee is less than 100%, please
include a description of the non-profit's timekeeping system to support
compliance with the standards of 2 CFR 230 Appendix B Subsection 8.m.(2)
and provide a copy of a completed time sheet.

3/ Costs are treated as indirect costs and should not be allowed as
direct charges to contracts and grants. All other costs are either
direct or indirect depending on whether they apply to direct or indirect
activities.

4/ If the proposed indirect costs for the provisional year being
negotiated is based on budgeted amounts (i.e. the total indirect costs
are different), please provide separate Schedules B and C for both
fiscal years.

Note: The non-profit's fringe benefit policies should be included with
the [initial]{.underline} proposal submission and in successive
proposals when revised.

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<col style="width: 5%" />
<col style="width: 8%" />
<col style="width: 6%" />
<col style="width: 1%" />
</colgroup>
<thead>
<tr class="header">
<th><strong> Schedule C:</strong></th>
<th><strong> </strong></th>
<th><strong> </strong></th>
<th colspan="9"><strong>SCHEDULE OF TOTAL EXPENDITURES
(6/30/2006)</strong></th>
<th><strong> </strong></th>
<th><strong> </strong></th>
<th></th>
</tr>
<tr class="odd">
<th><strong>A</strong></th>
<th><strong>B</strong></th>
<th><strong>C</strong></th>
<th></th>
<th><strong>D</strong></th>
<th><strong>E</strong></th>
<th><strong>F</strong></th>
<th><strong>G</strong></th>
<th><strong>H</strong></th>
<th><strong>I</strong></th>
<th></th>
<th colspan="4"></th>
</tr>
<tr class="header">
<th><strong>ELEMENTS OF COSTS</strong></th>
<th><strong>FINANCIAL STATEMENT EXPENDITURES</strong></th>
<th><p><strong>ADJUSTMENTS/ UNALLOWABLE COSTS</strong></p>
<p><strong>(See footnote)</strong></p></th>
<th></th>
<th><p><strong>EPA PROGRAM</strong></p>
<p><strong>A</strong></p></th>
<th><p><strong>Agriculture PROGRAM</strong></p>
<p><strong>B</strong></p></th>
<th><p><strong>State/Local PROGRAM</strong></p>
<p><strong>C</strong></p></th>
<th><strong>MEMBERSHIP &amp;  FUND RAISING</strong></th>
<th><strong>(D)+(E)+(F)+(G) TOTAL DIRECT COSTS</strong></th>
<th><strong>INDIRECT COSTS</strong></th>
<th></th>
<th colspan="4"></th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td rowspan="2">Salaries and wages</td>
<td rowspan="2">$1,327,638</td>
<td rowspan="2">0</td>
<td></td>
<td rowspan="2">$950,615</td>
<td rowspan="2">$140,831</td>
<td rowspan="2">$18,305</td>
<td rowspan="2">$1,592</td>
<td rowspan="2">$1,111,343</td>
<td rowspan="2">$216,295</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td rowspan="2">Fringe benefits</td>
<td rowspan="2">245,434</td>
<td rowspan="2">0</td>
<td></td>
<td rowspan="2">170,107</td>
<td rowspan="2">28,138</td>
<td rowspan="2">3,657</td>
<td rowspan="2">317</td>
<td rowspan="2">202,219</td>
<td rowspan="2">43,215</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td><strong>Subtotal labor &amp; fringes</strong></td>
<td><strong>$1,573,072</strong></td>
<td><strong>0</strong></td>
<td></td>
<td><strong>$1,120,722</strong></td>
<td><strong>$168,969</strong></td>
<td><strong>$21,962</strong></td>
<td><strong>$1,909</strong></td>
<td><strong>$1,313,562</strong></td>
<td><strong>$259,510</strong></td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Contractual services</td>
<td>$245,420</td>
<td>0</td>
<td></td>
<td>$207,770</td>
<td>$3,493</td>
<td>$34,157</td>
<td>$0</td>
<td>$245,420</td>
<td>$0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Depreciation/use allowance</td>
<td>41,582</td>
<td>0</td>
<td></td>
<td>29,772</td>
<td>4,412</td>
<td>574 </td>
<td>50</td>
<td>34,808</td>
<td>6,774</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Emergency asst. payments</td>
<td>72,859</td>
<td>0</td>
<td></td>
<td>0</td>
<td>52,809</td>
<td>20,050</td>
<td>0</td>
<td>72,859</td>
<td>0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Equipment rental and maintenance</td>
<td>11,448</td>
<td>0</td>
<td></td>
<td>5,194</td>
<td>592</td>
<td>0</td>
<td>281</td>
<td>6,070</td>
<td>5,378</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Equipment / capital</td>
<td>58,215</td>
<td>(58,215)</td>
<td>1/</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Equipment / minor</td>
<td>546</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>546</td>
<td>0</td>
<td>546</td>
<td>0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Program materials</td>
<td>124,616</td>
<td>0</td>
<td></td>
<td>124,616</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>124,616</td>
<td>0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Insurance</td>
<td>12,554</td>
<td>0</td>
<td></td>
<td>8,209</td>
<td>92</td>
<td>85</td>
<td>373</td>
<td>8,759</td>
<td>3,795</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Occupancy</td>
<td>129,314</td>
<td>0</td>
<td></td>
<td>100,956</td>
<td>24,637</td>
<td>459</td>
<td>233</td>
<td>126,285</td>
<td>3,029</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Office supplies</td>
<td>32,540</td>
<td>0</td>
<td></td>
<td>13,317</td>
<td>1,794</td>
<td>3,649</td>
<td>842</td>
<td>19,602</td>
<td>12,938</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Other expenses</td>
<td>36</td>
<td>(36)</td>
<td>2/</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0 </td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Subaward</td>
<td>386,000</td>
<td>(216,000)</td>
<td>3/</td>
<td>100,000</td>
<td>70,000</td>
<td></td>
<td></td>
<td>170,000</td>
<td>0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Postage</td>
<td>3,901</td>
<td>0</td>
<td></td>
<td>301</td>
<td>476</td>
<td>125</td>
<td>2,467</td>
<td>3,369</td>
<td>532</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Professional fees</td>
<td>34,211</td>
<td>0</td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>34,211</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Program supplies</td>
<td>109,663</td>
<td>0</td>
<td></td>
<td>55,241</td>
<td>7,603</td>
<td>40,659</td>
<td>6,160</td>
<td>109,663</td>
<td>0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Printing</td>
<td>65,697</td>
<td>0</td>
<td></td>
<td>7,022</td>
<td>5,140</td>
<td>1,345</td>
<td>44,838</td>
<td>58,345</td>
<td>7,352</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Renovations and improvement</td>
<td>16,470</td>
<td>(16,470)</td>
<td>1/</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td>Telephone</td>
<td>29,013</td>
<td>0</td>
<td></td>
<td>13,331</td>
<td>5,788</td>
<td>349</td>
<td>600</td>
<td>20,068</td>
<td>8,945</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td>Travel</td>
<td>71,292</td>
<td>0</td>
<td></td>
<td>56,553</td>
<td>7,298</td>
<td>2,513</td>
<td>0</td>
<td>66,364</td>
<td>4,928</td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td><strong>Subtotal other</strong></td>
<td><strong>$1,445,377</strong></td>
<td><strong>($290,721)</strong></td>
<td></td>
<td><strong>$722,285</strong></td>
<td><strong>$184,134</strong></td>
<td><strong>$104,511</strong></td>
<td><strong>$55,844</strong></td>
<td><strong>$1,066,774</strong></td>
<td><strong>$87,882</strong></td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="odd">
<td> </td>
<td> </td>
<td> </td>
<td></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
<td colspan="4"></td>
</tr>
<tr class="even">
<td><strong>TOTAL</strong></td>
<td><strong>$3,018,449</strong></td>
<td><strong>($290,721)</strong></td>
<td></td>
<td><strong>$1,843,007</strong></td>
<td><strong>$353,103</strong></td>
<td><strong>$126,473</strong></td>
<td><strong>$57,753</strong></td>
<td><strong>$2,380,336</strong></td>
<td><strong>$347,392</strong></td>
<td></td>
<td colspan="4"></td>
</tr>
</tbody>
</table>

  --------------------------------------- ----------------------------------- -----------
  [ Indirect Cost Rate                                                         
  Calculation]{.underline}:                                                   

  Adjusted indirect costs (above - pool): \$347,392                            

                                          \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--   31.26%

  Total direct salaries (above - base):   \$1,111,343                          
  --------------------------------------- ----------------------------------- -----------

  --------------------------------------- ----------------------------------- -----------
  [ Federal Percentage                                                         
  Calculation]{.underline}:                                                   

  Federal funds used in base:             \$1,091,446                          

                                          \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--   98.21%

  Total direct salaries base:             \$1,111,343                          
  --------------------------------------- ----------------------------------- -----------

  ------------------------------- ----------------- --- -- -----------------------------------------------
  [Reconciliation:]{.underline}                            [Adjustments/Unallowable Costs:]{.underline}

  Direct costs                    \$2,380,336              1/ capital outlay related to unallowable
                                                           activities per 2 CFR 230 Appendix B Subsection
                                                           15

  Indirect costs                  \$347,392                2/ bad debt, unallowable per 2 CFR 230 Appendix
                                                           B Subsection 5

  Exclusions                      \$290,721                3/ subaward over \$25,000 (see detail schedule
                                                           in Section M)

  Total expenditures              **\$3,018,449**          
  ------------------------------- ----------------- --- -- -----------------------------------------------

**Schedule D -- Schedule of Funding for fiscal year ended 6/30/2006**

Program Title Amount Awarded

Environmental Protection Agency:

Program A.1 \$1,734,528

Program A.2 239,954

Department of Agriculture:

Program B.1 482,211

Program B.2 125,899

Kellog Foundation:

Program C 49,857

Total Funding \$2,632,449

**Schedule E -- Organization chart as of June 2006**

![](media/image1.wmf)

**Certification of Indirect Costs**

**(Non-profit Organization)**

This is to certify that I have reviewed the indirect cost rate proposal
submitted herewith and to the best of my knowledge and belief:

(1) All costs included in this proposal dated [\[identify
    date\]]{.underline} to establish billing or provisional/final
    indirect costs rates for the period [\[identify period covered by
    rate\]]{.underline} are allowable in accordance with the
    requirements of the Federal award(s) to which they apply and 2 CFR
    Part 230 (formerly OMB Circular A-122), "Cost Principles for
    Non-profit Organizations." Unallowable costs have been adjusted for
    in allocating costs as indicated in the indirect cost rate proposal.

(2) All costs included in this proposal are properly allocable to
    Federal awards on the basis of a beneficial or causal relationship
    between the expenses incurred and the agreements to which they are
    allocated in accordance with applicable requirements. Further, the
    same costs that have been treated as indirect costs have not been
    claimed as direct costs. Similar types of costs have been accounted
    for consistently and the Federal Government will be notified of any
    accounting changes that would affect the predetermined rate.

> I declare that the foregoing is true and correct.

Organization:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of Official (printed):
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date of Execution:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Signed by the official having the authority

to negotiate indirect cost rates for the

organization, or by a higher level official.)

**LOBBYING COST CERTIFICATE**

I hereby certify that the

(name of organization)

has complied with the requirements and standards on lobbying costs in 2
CFR Part 230 (formerly OMB Circular A-122) for the following period:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(fiscal year covered by the indirect cost proposal)

Organization:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of Official (printed):
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date of Execution:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Signed by the official having the authority

to negotiate indirect cost rates for the

organization, or by a higher level official.)

**Note: The above certification is a requirement per 2 CFR Part 230
Appendix B Section 25.c(2).**

**We will not be able to process your indirect cost proposal without
this certification.**

**Statement of Treatment of Paid Absences**

\(A\) Treatment of paid absences: Vacation, holiday, sick leave, and
other paid absences are included in salaries and wages and are claimed
on grants, contracts, and other agreements as part of the normal cost
for the salaries and wages. Separate claims for the costs of these paid
absences are not made.

\(B\) Treatment of paid absences: Vacation, holiday, sick leave pay and
other paid absences are included in the organization's fringe benefit
rate and are not included in the direct cost of salaries and wages.
Claims for direct salaries and wages must exclude those amounts paid or
accrued to employees for periods when they are on vacation, holiday,
sick leave or are otherwise absent from work.

\(C\) None of the above treatments are applicable. Here's how paid
absences are treated:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**I certify that the above selection is correct.**

Organization:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name of Official (printed):
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date of Execution:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Signed by the official having the authority

to negotiate indirect cost rates for the

organization, or by a higher level official.)