**SAMPLE PROPOSAL**

**State and Local Governments**

**THIS IS A SHORT, SIMPLIFIED SAMPLE OF AN INDIRECT**

**COST PROPOSAL. IF YOU WOULD USE THIS TYPE OF FORMAT,**

**THE NATIONAL BUSINESS CENTER COULD EXPEDITE THE**

**NEGOTIATION OF YOUR [FIXED-WITH-CARRYFORWARD]{.underline}**

**INDIRECT COST RATE.**

**[Information and examples used in this proposal]{.underline}**

**[are all fictitious and]{.underline}**

**[represent no particular state or local government
organization.]{.underline}**

**Department of the Interior**

**Office of the Secretary**

**Indirect Cost Services**

**Acquisition Services Directorate**

**National Business Center**

**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>**

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

**TABLE OF CONTENTS**

# Page

CHECKLIST 3

INTRODUCTION 4

CERTIFICATE OF INDIRECT COSTS 5

ACCOUNTANT\'S REPORT 6

ACCOUNTING SYSTEM DESCRIPTION 7

ORGANIZATION CHART 8

INDIRECT COST PERSONNEL JUSTIFICATIONS 9

SCHEDULE A, ELEMENTS OF COST 10

SCHEDULE B, SCHEDULE OF EXPENDITURE OF FEDERAL AWARDS 11

SCHEDULE C, CARRYFORWARD AND INDIRECT COST RATE COMPUTATION

W/FEDERAL PERCENTAGE 12

SCHEDULE D, SUMMARY SCHEDULE 13

SCHEDULE E, INDIRECT COST DETAIL SCHEDULE 14

SCHEDULE F, SCHEDULE OF INDIRECT SALARIES 15

SCHEDULE G, 3% LIMITATION ON SPORT FISH & WILDLIFE RESTORATION FUNDS 16

FINAL APPORTIONMENT OF PITTMAN-ROBERTSON 18

FINAL APPORTIONMENT OF DINGELL-JOHNSON 19

STATEWIDE COST ALLOCATION PLAN (SWCAP) 20

**[Indirect Cost Proposal (ICP) Checklist (State/Local
Government)]{.underline}**

-   1\. **Contact person information** (preferably the person who
    prepared the proposal):

    -   Entity Name and mailing address

    -   Employer Identification Number (EIN)

    -   Point-of-Contact Name and position title

    -   Email address (very important)

    -   Phone & fax numbers

    -   Entity's Internet website address, if any Page
        #\_\_\_\_\_\_\_\_\_

-   2\. Signed **Certificate of Indirect Costs**. Page
    #\_\_\_\_\_\_\_\_\_

-   3\. Description of **accounting system**. Page #\_\_\_\_\_\_\_\_\_

-   4\. Applicable **audited financial statements** that meet the
    requirements of the Single Audit Act of 1984, Public Law 98-502, as
    amended. If Entity is under the A-133 threshold (\$500,000) and does
    not have an audit, then an **Accountant's Report** and a copy of the
    general ledger is required. Page #\_\_\_\_\_\_\_\_\_

-   5\. **Organization Chart**. Page #\_\_\_\_\_\_\_\_\_

-   6\. **Indirect Cost Personnel Justifications.** Page
    #\_\_\_\_\_\_\_\_\_

-   7\. Entity's written policy for allocating and identifying direct
    and indirect costs **(Schedule A, Elements of Cost)**. Page
    #\_\_\_\_\_\_\_\_\_

-   8\. Schedule of all funding by program title and grouped by funding
    agency with majority **federal** **funding listed** on top
    **(Schedule B, Schedule of Expenditure of Federal Awards)**. Page
    #\_\_\_\_\_\_\_\_\_

-   9\. **Schedule C, Carryforward and Indirect Cost Rate Computation**
    (required if fixed with carryforward indirect cost rate is requested
    for the third year and beyond). Page #\_\_\_\_\_\_\_\_\_

-   10\. **Federal percentage** -- the approximate percentage of the
    direct base funded by Federal sources for each year that a rate is
    proposed. Page #\_\_\_\_\_\_\_\_\_

-   11\. A **schedule** **that summarizes total costs by line item
    expenditure (Schedule D, Summary Schedule)** which should include
    but not be limited to:

    -   Total expenditures (reconcilable to the audit if using actual
        numbers) Page #\_\_\_\_\_\_\_\_\_

    -   Exclusions/Unallowable Costs with footnote explanation

    -   Direct costs and indirect costs

-   12\. **Schedule E, Indirect Cost Detail Schedule**. Page
    #\_\_\_\_\_\_\_\_\_

-   13\. A breakdown of **indirect salaries** by position title, amount,
    indirect percentage, and grouped by each department **(Schedule F,
    Schedule of Indirect Salaries)**. Page #\_\_\_\_\_\_\_\_\_

-   14\. **Schedule G, 3% Limitation on Sport Fish & Wildlife
    Restoration Funds,** if applicable. Page #\_\_\_\_\_\_\_\_\_

-   15\. **Final Apportionment of Federal Aid Funds** letter and
    schedule(s) provided by U.S. Fish and Wildlife Service, if
    applicable. (See website:
    [http://wsfrprograms.fws.gov]{.underline}.)

Final Apportionment of Pittman-Robertson (PR) Page #\_\_\_\_\_\_\_\_\_

Final Apportionment of Dingell-Johnson (DJ) Page #\_\_\_\_\_\_\_\_\_

-   16\. An HHS Approved Statewide/Central Service Cost Allocation Plan
    (SWCAP/CSCAP) allocation schedule for the year being finalized. (See
    website [http://rates.psc.gov/fms/dca/dca_swcap.html]{.underline})
    Page #\_\_\_\_\_\_\_\_\_

\[State or Local Government Organization\]

EIN: 11-1111111

Website: http://www.state.gov

Indirect Cost Rate Proposal

**[INTRODUCTION]{.underline}**

The \[State or Local Government Organization\] has received an indirect
cost rate from the Department of the Interior since fiscal year (FY)
1990. This proposal is based upon estimated budgets for all programs to
be administered by the \[Organization\] during the period July 1, 2007,
through June 30, 2008. All Federal, State, and district programs have
been included in the proposal.

During the proposal fiscal year, no significant changes are anticipated,
such as (a) to the accounting system, or (b) 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).

The individuals to contact in regard to this proposal are:

Ms. Julia Smith, Finance Manager

\[State or Local Government Organization\]

123 Middle Street

Upper, Washington 97865-1111

Tel (888) 555-1234

Email: jsmith@state.gov

Fax (888) 555-1240

Ms. Jane Down, Assistant Budget Officer

\[State or Local Government Organization\]

123 Middle Street

Upper, Washington 97865-1111

Tel (888) 555-2345

Email: jdown@state.gov

Fax (888) 555-1240

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

**[CERTIFICATE OF INDIRECT COSTS]{.underline}**

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 **[\[fill in
    date]{.underline}**\] to establish billing or final indirect costs
    rates for \[**[fill in period covered by rate]{.underline}**\] are
    allowable in accordance with the requirements of the Federal
    award(s) to which they apply and 2 CFR Part 225 (formerly OMB
    Circular A-87), "Cost Principles for State, Local and Indian Tribal
    Governments." Unallowable costs have been adjusted for in allocating
    costs as indicated in the cost allocation plan.

(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.

(3) Any previous understandings with the National Business Center,
    Indirect Cost Services have been incorporated into this indirect
    cost rate proposal.

I declare under penalty of perjury that the foregoing is true and
correct.

Signature

Print Name

Title

Name of \[State or Local Government Organization\]

Date Signed

**NOTE: THIS REPORT OR ONE SIMILAR, ACCOMPANIED BY A COPY OF THE GENERAL
LEDGER, IS REQUIRED ONLY FOR STATE OR LOCAL GOVERNMENT ORGANIZATIONS
THAT ARE IN THEIR [THIRD YEAR]{.underline} OF INDIRECT COST PROPOSAL
NEGOTIATIONS WHEN NO CURRENT AUDITED FINANCIAL STATEMENT IS AVAILABLE.**

**[ACCOUNTANT'S REPORT]{.underline}**

We have examined management's assurances that \[State or Local
Government Organization\] meets the standards for grantee financial
management systems and related internal controls required by Title 25,
Chapter 1, of the Code of Federal Regulations, Part 276.7, and reviewed
the bookkeeping and accounting systems of the \[Organization\] and the
related internal controls do determine if the existing system and
controls are in compliance with the standards set forth in Title 25,
Chapter 1, of the Code of Federal Regulations, Part 276.7., by providing
for the following:

> 1\. Accurate, current, and complete disclosure of the financial
> results of each contract and/or grant program in accordance with
> Federal reporting requirements.
>
> 2\. Records that identify adequately the source and application of
> funds for each contract and/or grant program.
>
> 3\. Effective control over, and accountability for, all contract
> and/or grant or subgrant funds and real and personal property acquired
> with grant or subgrant funds.
>
> 4\. Comparison of actual costs with budgeted amounts for each contract
> and/or grant or subgrant.
>
> 5\. Procedures to minimize the time elapsing between the transfer of
> funds from the U.S. Treasury and the disbursement by the grantee.
>
> 6\. Procedures for determining the allowability and allocability of
> costs with the applicable cost principles.
>
> 7\. Accounting records that are supported by source documentation.
>
> 8\. A systematic method to assure timely and appropriate resolution of
> audit findings and recommendations.

We understand that procedures in conformity with the above criteria are
considered by most granting agencies to be adequate for their purpose,
and that procedures not in conformity with those criteria indicate some
inadequacy for such purposes. In our opinion based on this understanding
and our review and testing of the management systems for record keeping,
personnel, procurement, financial management and property management,
the \[Organization\] financial management systems are adequate to meet
the criteria established in Title 25, Chapter 1, of the Code of Federal
Regulations, Part 276.7.

This report is intended for the information of the State or Local
Government and federal and state granting agencies; it should not be
used for any other purpose.

CPA\'s Signature and Date

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

**[ACCOUNTING SYSTEM DESCRIPTION]{.underline}**

The \[State or Local Government Organization\] has an automated,
double-entry, accrual system of accounting. Separate journals and
ledgers (organization codes and project numbers) are maintained for each
individual program in the direct cost base. A separate journal and a
general ledger (organization codes and project numbers) are also
maintained for the indirect cost pool.

\[State or Local Government Organization\]

Organization Chart as June 30, 2006

![](media/image1.wmf)

### \[State or Local Government Organization\]

Indirect Cost Rate Proposal

**[INDIRECT COST PERSONNEL JUSTIFICATIONS]{.underline}**

The following account of each position should provide the necessary
justification to fund administrative costs through the indirect cost
pool for fiscal year 2008.

**GENERAL MANAGER**: The General Manager has administrative
responsibility for all staff and activities of the \[Organization\].
Under the direction of the Board of Directors, the General Manager
plans, administrates through subordinate supervision, reviews and
evaluates all Organizational functions and activities; ensures that such
activities are carried out within statutory, budgetary and policy
guidelines. The General Manager is also responsible for representing the
\[Organization\] in negotiations of grants/contracts; coordinating the
direction of the \[Organization\]; and representing the \[Organization\]
in meetings with governmental and business \[Organizations\], community
groups, developers, customers and the public. Therefore, only 40 percent
of the General Manager's time is charged to indirect administration,
with the remaining 60 percent charged direct to contracts and program
activities.

**FINANCE MANAGER**: This position handles the business activities of
the \[Organization\]. The Finance Manager develops and administers the
annual budget for the \[Organization\]; reviews and authorizes
expenditures; plans and recommends revenue strategies, and implements
plans after approval by General Manager and the Board. This position
will be responsible for the business department and also be involved in
program business activities, with 80 percent of the time chargeable to
indirect administrative costs.

**ASSISTANT BUDGET OFFICER (ABO)**: The ABO serves as interim Finance
Manager during her absence. The ABO plans, organizes, directs and
coordinates the administrative support functions of the
\[Organization\]. Specifically, the ABO provides general management and
administration of the \[Organization\]'s billing and collection system,
personnel, accounting, customer service, records maintenance and related
office support services. In addition, the ABO assists in budget
preparation and monitors and controls administrative costs.

**BOOKKEEPERS**: These positions are responsible for maintaining the
books of entry for all programs and ensuring that the financial system
is kept current. Specifically, the Bookkeepers perform accounting work
of a technical nature and assist in the financial operation of the
\[Organization\]. Major duties include maintenance of accounts payable,
receivable, cash disbursements and the general ledger. In addition, the
bookkeepers reconcile bank statements and all monthly financial reports,
as necessary, for the General Manager.

**ACCOUNTING CLERKS**: This position is part of the centralized
accounting department of the \[Organization\]. The Accounting Clerk is
responsible for distributing payroll for all programs and ensuring that
the proper reports and records are kept current. This position also
assists with the accounts payable.

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

> **Elements of Cost Schedule A**

  ----------------------------- --- --------------------------------------
  **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 organization to the next.

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

**Schedule of Expenditure of Federal Awards as of 6/30/2008 Schedule B**

Program Title Expenditures

Department of the Interior:

Fish & Wildlife \$17,345,528

Environmental Protection Agency:

Program A.1 4,734,528

Program A.2 2,239,954

Department of Agriculture:

Program B.1 1,482,211

Program B.2 925,899

State Wildlife Grant:

Program C 419,744

Total Funding \$27,147,864

+---------------------------------------------------------+--------+---+
|                                                         | **Sc   |   |
|                                                         | hedule |   |
|                                                         | C**    |   |
+---------------------------------------------------------+--------+---+
| #                                                       |        |   |
| ######## **\[State or Local Government Organization\]** |        |   |
+---------------------------------------------------------+--------+---+
| **Carryforward and Indirect Cost Rate Computation       |        |   |
| w/Federal Percentage**                                  |        |   |
+---------------------------------------------------------+--------+---+
| **Fiscal Year Ending June 30, 2008**                    |        |   |
+---------------------------------------------------------+--------+---+
|                                                         |        |   |
+---------------------------------------------------------+--------+---+
| ####                                                    | #      |   |
|                                                         | #### Y |   |
| #### TITLE/DESCRIPTION                                  | EAR-EN |   |
|                                                         | DING A |   |
|                                                         | MOUNTS |   |
+---------------------------------------------------------+--------+---+
|                                                         |        |   |
+---------------------------------------------------------+--------+---+
| FY 2006 Direct Cost Base (based on actual costs         | \$41,7 | \ |
| incurred)                                               | 65,945 | * |
|                                                         |        |   |
+---------------------------------------------------------+--------+---+
| FY 2006 Indirect Cost Rate (per FY 2006 Negotiation     | 5.82%  |   |
| Agreement)                                              |        |   |
+---------------------------------------------------------+--------+---+
| FY 2006 Recoverable Indirect Costs                      | \$2,4  |   |
|                                                         | 30,778 |   |
+---------------------------------------------------------+--------+---+
|                                                         |        |   |
+---------------------------------------------------------+--------+---+
| FY 2006 Indirect Costs (based on actual costs incurred) | \$2,6  | \ |
|                                                         | 00,280 | * |
|                                                         |        |   |
+---------------------------------------------------------+--------+---+
| FY 2006 SWCAP                                           | 18,240 | \ |
|                                                         |        | * |
+---------------------------------------------------------+--------+---+
| FY 2004 Overrecovery Carryforward to FY 2006 (per FY    | -3     |   |
| 2006 Negotiation Agreement)                             | 54,125 |   |
+---------------------------------------------------------+--------+---+
| FY 2006 Indirect Cost Pool                              | 2,2    |   |
|                                                         | 64,395 |   |
+---------------------------------------------------------+--------+---+
| FY 2006 Recoverable Indirect Costs (from above)         | -2,4   |   |
|                                                         | 30,778 |   |
+---------------------------------------------------------+--------+---+
| FY 2006 Overrecovery Carryforward to FY 2008            | -1     |   |
|                                                         | 66,383 |   |
+---------------------------------------------------------+--------+---+
| FY 2008 Indirect Costs (proposed)                       | 2,6    | \ |
|                                                         | 00,280 | * |
|                                                         |        | \ |
|                                                         |        | * |
+---------------------------------------------------------+--------+---+
| FY 2008 SWCAP                                           | 18,240 | \ |
|                                                         |        | * |
|                                                         |        | \ |
|                                                         |        | * |
+---------------------------------------------------------+--------+---+
| FY 2008 Indirect Cost Pool                              | \$2,4  |   |
|                                                         | 52,137 |   |
+---------------------------------------------------------+--------+---+
|                                                         |        |   |
+---------------------------------------------------------+--------+---+
| FY 2008 Direct Cost Base (proposed)                     | \$41,7 | \ |
|                                                         | 65,945 | * |
|                                                         |        | \ |
|                                                         |        | * |
|                                                         |        | 1 |
|                                                         |        | / |
+---------------------------------------------------------+--------+---+
|                                                         |        |   |
+---------------------------------------------------------+--------+---+
| FY 2008 Indirect Cost Rate                              | 5.87%  |   |
+---------------------------------------------------------+--------+---+
|                                                         |        |   |
+---------------------------------------------------------+--------+---+

\* Please provide detail support for actual indirect and actual direct
base costs reconcilable to financial statements that meet the
requirements of the Single Audit Act of 1984, Public Law 98-502.

> \*\* Please provide detail support for proposed indirect and direct
> base costs when using budgeted numbers and indicate the percentage of
> Federal funding in the base. Separate Schedules C, D, E and F will be
> required.
>
> 1/ Federal funding percentage = 65%

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

### ![](media/image2.wmf) 

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

  ---------------- ---------------- ----------- ----------- ------------- --- ------------- ------------
                                                                                            

  **Indirect Cost                                                                           **Schedule
  Detail                                                                                    E**
  Schedule\***                                                                              

  For year ending                                                                           
  6/30/06                                                                                   

                                    Human                   Budget &                        

  Line Item Costs  Administration   Resources   IT          Finance           Total         

                                                                                            

  Salaries &       \$95,000         \$250,000   \$210,000   \$550,000         \$1,105,000   
  wages\*\*                                                                                 

  Fringe benefits  29,000           75,000      63,000      165,000           332,000       

                                                                                            

  Advertising                       40,000                  20,000            60,000        

  Communications   8,000            16,000      25,000      20,000            69,000        

  Dues &           2,000            4,000       8,000       10,000            24,000        
  subscription                                                                              

  Freight &        5,000            10,000      25,000      15,000            55,000        
  handling                                                                                  

  Insurance        1,300            26,000      26,000      28,000            81,300        

  Printing         4,000            8,000       10,000      20,000            42,000        

  Professional                      99,000      150,000     113,000           362,000       
  services                                                                                  

  Rental           750              15,000      35,000      22,000            72,750        

  Repairs &        1,000            2,000       100,000     27,500            130,500       
  maintenance                                                                               

  Travel & Per                      15,000      45,000      50,000            110,000       
  Diem                                                                                      

  Janitorial       400              1,200       1,200       2,000             4,800         

  Security         2,500            5,000       5,000       5,000             17,500        
  services                                                                                  

  Utilities        800              1,600       5,000       5,000             12,400        

  Supplies         9,000            18,000      45,000      25,000            97,000        

  Miscellaneous    242              13,987      7,913       2,888             25,030        
  expenses                                                                                  

                                                                                            

  Total            \$158,992        \$599,787   \$761,113   \$1,080,388       \$2,600,280   

                                                                                            

                                                                                            

                                                                                            
  ---------------- ---------------- ----------- ----------- ------------- --- ------------- ------------

\* Schedule of indirect costs (proposed and actual) is sufficiently
detailed to determine the purpose and classification, including salaries
and unallowable expenses (e.g. contributed salaries and services,
interest expense, bad debts, advertising, depreciation on federally
funded assets and lobbying costs) have been eliminated from the indirect
cost pool.

\*\* Please provide indirect salaries breakdown by position title, %
included as indirect, amount, and grouped by each department. See
Schedule F.

\[State or Local Government Organization\]

Indirect Cost Rate Proposal

**Schedule of Indirect Salaries Schedule F**

  ----------------------- ---------------- --------------------------- ------------ --- ------------ --- -------------
  **Title/Description**                                                **Annual         **%              **Indirect
                                                                       Salaries**       Indirect**       Salaries**

  Salaries:                                                                                              

                          Administration                                                                 

                                           General Manager             \$124,385        40%              \$49,754

                                           Admin Assistant             66,436           38%              25,246

                                           Admin Secretary             47,619           42%              20,000

                          Subtotal                                                                       95,000
                          Administration                                                                 

                                                                                                         

                          Human Resources                                                                

                                           HR Manager                  45,000           100%             45,000

                                           HR Secretary                20,000           100%             20,000

                                           Personnel Assistant (10)    185,000          100%             185,000

                          Subtotal Human                                                                 250,000
                          Resources                                                                      

                                                                                                         

                          Information                                                                    
                          Technology                                                                     

                                           IT Manager                  48,500           100%             48,500

                                           IT Secretary                21,500           100%             21,500

                                           IT Programmers (4)          140,000          100%             140,000

                          Subtotal Info                                                                  210,000
                          Tech                                                                           

                                                                                                         

                          Budget & Finance                                                               

                                           Finance Manager             61,250           80%              49,000

                                           Assistant Budget Officer    43,000           100%             43,000

                                           Finance Secretary           20,000           100%             20,000

                                           Accountants (4)             120,000          100%             120,000

                                           Accounting Clerk (6)        105,000          100%             105,000

                                           Bookkeeper (5)              87,500           100%             87,500

                                           Internal Auditor (5)        125,500          100%             125,500

                          Subtotal Budget                                                                550,000
                          & Finance                                                                      

                                                                                                         

  Total Indirect Salaries                                                                                \$1,105,000
  & Wages                                                                                                

                                                                                                         
  ----------------------- ---------------- --------------------------- ------------ --- ------------ --- -------------

**3% LIMITATION ON SPORT FISH & WILDLIFE RESTORATION FUNDS Schedule G**

![](media/image3.wmf)

NARRATIVE Schedule G-1

  ----------- -- ---------------------------------------------------------------
  **Notes**      **Remarks**

                 

  **A**          Actual expenditures as they relate to the direct
                 Pittman-Robertson (PR) Act expenditures that were included in
                 the actual direct cost base used to negotiate the indirect cost
                 rate(s); e.g., modified direct costs (excludes capital
                 expenditures and other distorting items, such as passthrough
                 funds, major subcontracts, etc.), direct salaries and wages, or
                 another base which results in an equitable distribution, such
                 as direct salaries and wages including fringe benefits.

                 

  **B**          Actual expenditures as they relate to the direct
                 Dingell-Johnson (DJ) Act expenditures that were included in the
                 actual direct cost base used to negotiate the indirect cost
                 rate(s); e.g., modified direct costs (excludes capital
                 expenditures and other distorting items, such as passthrough
                 funds, major subcontracts, etc.), direct salaries and wages, or
                 another base which results in an equitable distribution, such
                 as direct salaries and wages including fringe benefits.

                 

  **C**          This is a calculated amount. It totals the expenditures for the
                 two Acts to arrive at total actual base expenditures.

                 

  **D**          Indirect cost rate negotiated for actual cost year; e.g., if
                 the actual expenditures above are FY 2006 expenditures, then
                 the negotiated FY 2006 indirect cost rate is to be used.

                 

  **E**          This is a calculated amount. It determines the recoverable
                 indirect costs using the direct cost base related to the PR/DJ
                 direct expenditures and the negotiated indirect cost rate.

                 

  **F**          Total actual PR/DJ expenditures including everything expended
                 and recorded against the Acts.

                 

  **G**          This is a calculated amount. It determines the actual direct
                 expenditures for the PR/DJ and is calculated by reducing the
                 total actual PR/DJ expenditures by the recoverable indirect
                 costs.

                 

  **H**          Total actual direct expenditures for the state/territorial
                 government or department and before any adjustments.

                 

  **I**          This is a calculated amount. It calculates the ratio of the
                 PR/DJ expenditures to the total direct expenditures as a
                 percentage. This percentage is used to calculate the portion of
                 the Central Services Cost Allocation Plan (CSCAP) and/or
                 Statewide Cost Allocation Plan (SWCAP) that is allocable to the
                 PR/DJ expenditures.

                 

  **J**          Total CSCAP/SWCAP of actual cost year, in this example FY 2006.

                 

  **K**          This is a calculated amount. It determines the amount allocable
                 to the PR/DJ from the CSCAP/SWCAP.

                 

  **L**          This is the final apportionment amount of the Federal Aid in
                 Wildlife Restoration (PR) Funds for the actual cost year. It
                 can be obtained from the Wildlife and Sport Fish Restoration
                 Programs' Division of Federal Assistance home page of the U.S.
                 Fish & Wildlife Services at **http://wsfrprograms.fws.gov**.

                 

  **M**          This is the final apportionment amount of the Federal Aid in
                 Sport Fish Restoration (DJ) Funds for the actual cost year. It
                 can be obtained from the Wildlife and Sport Fish Restoration
                 Programs' Division of Federal Assistance home page of the U.S.
                 Fish & Wildlife Services at **http://wsfrprograms.fws.gov**.

                 

  **N**          This is a calculated amount. It determines the total
                 apportionment for PR/DJ funds for actual cost year.

                 

  **O**          Three percent limitation, see 50 CFR Part 1, Wildlife and
                 Fisheries, chapter I, paragraph 80.15(d).

                 

  **P**          This is a calculated amount. It determines the 3 percent
                 limitation on CSCAP.

                 

  **Q**          If the CSCAP/SWCAP portion related to PR/DR (K) is less than
                 the 3% limitation (P), there is no reduction to the FY 2006
                 CSCAP/SWCAP amount. Claim the amount from \"J.\"

                 

  **R**          This is a calculated amount. If the portion of CSCAP/SWCAP
                 related to PR/DJ **(K)** is **[greater than]{.underline}** the
                 3 percent limitation **(P)** then the difference between the
                 amount based on the ratio of direct expenditures and the amount
                 calculated using the apportionment and limitation is
                 calculated. The outcome is deducted from the actual year
                 CSCAP/SWCAP amount, resulting in the CSCAP/SWCAP that can be
                 claimed (See \"Q\" above).
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