The Comptroller is responsible for calculating a separate Indirect Cost Recovery Plan and indirect cost rates for each department receiving or anticipating receipt of federal funding. The rate may not exceed the federally approved rate as certified by the Comptroller. The Comptroller will notify each department of its indirect cost rate, including all personnel and department costs allocated through the approved rate. Departments must ensure that they do not charge costs directly to federal grants, through the labor distribution systems or other mechanisms, when such costs are also allocated to the indirect cost rate. Indirect costs will be assessed against all federal, non-budgeted special revenue, and trust fund accounts unless an explicit exemption applies.
All budgetary funds are exempt.
As in the case of fringe benefits, department heads are responsible for budgeting for indirect costs from the appropriate funds. The Budget Director may waive assessment of indirect costs for a particular fiscal year, in whole or in part, when he determines that the waiver is in the best interest of the Commonwealth. These institutions are excluded from the requirements of the preceding section of this Bulletin governing indirect costs. When a department receives funds under a federal grant by reimbursement, the department must deposit the reimbursement with the Treasurer s office immediately upon receipt. In making this deposit, the department must designate the amounts attributable to fringe benefits and to the indirect costs, pursuant to instructions from the Comptroller.