The results of these studies are then included in the indirect cost proposals they submit for Federal reimbursement. These standards replaced the initial standards from December 1991, which did not specifically address the issues in the more recent special studies. The engineering firm also performed selected on-site reviews at selected universities to evaluate the new standards. Technical reports issued by this firm have assisted HHS in eliminating or significantly reducing the financial impact of the universities' special studies. Since these new standards were only recently adopted, resultant indirect cost savings are not yet evident.
State governments operate numerous types of self-insurance funds.
Due to the significant amounts of Federal dollars involved, HHS engaged an actuarial firm to assess the reasonableness of the premiums charged and the related accumulated cash reserve balances for two funds. Based on the actuary's assessment, HHS reduced the Federal claims. Since both cases are currently under appeal, resultant cost savings are not yet known. Since this mirrors requirements that HHS had in place since 1987, no additional improvement to indirect cost negotiations are expected from this section of the revised Circular. As a result of the controversies associated with utility special studies, OMB issued regulations prohibiting the use of these studies at colleges and universities after June 1998.