A final interest rate is set as soon as the actual costs of the financial year are known. Final interest rates are issued once the adjustment process is complete at the end of the preliminary payment period. A final interest rate cannot be adjusted. A de minimis rate represents 10% of the total modified direct cost and can be used indefinitely. The modified total direct costs shall be the basis on which a de minimis rate is applied. This basis may include direct costs such as salaries and benefits, program materials and accessories, and travel. The final rates are used to adjust the indirect costs claimed and may include reimbursement or payment if the final rate is lower or higher than the provisional rate used. All costs that are not classified as direct are indirect costs. Texas Health and Human Services requires that all state and federal grants from the state Department of Health Services or the Health and Human Services Commission have a fixed and approved rate to cover indirect costs. The PSC`s dedicated team of indirect cost negotiators includes expertise in federal grant regulation, generally accepted accounting principles, operational best practices and market values of tariffs to assess the ability of grant recipients to conduct grant activities. The questionnaire on indirect cost rates must be submitted to the HHS Indirect Cost Rates Group via the homepage of the sub-beneficiary of the Federal Office of Funds. The questionnaire must be completed by the General Manager, Chief Financial Officer, District Judge or equivalent corporation. The indirect cost rate questionnaire is necessary to initiate and establish an approved method to cover indirect costs.

The questionnaire allows entities to select an indirect cost rate option. (b) The National Institute of Health, Department of Financial Advisory Services, establishes indirect cost rates and similar rates to be used in contracts awarded to for-profit organizations. This option is available to businesses that do not currently have an approved or preliminary indirect cost rate at the federal or state level. The proposal for indirect cost rates must be submitted to the hhscapé indirect cost rate group via the homepage of the sub-beneficiary of the Federal Office of Funds. HHS offers different types of rates to cover indirect costs. These options are available to entities requesting a negotiated rate. Limits on indirect cost rates, if any, can be found in the Notice of Funding Opportunity for each state or federal grant. The predetermined interest rate can only be adjusted in unusual circumstances. If the Company`s total expenses increase or decrease by more than 25% within 90 days of the predetermined rate, the Company must submit a proposal for interest. The tariff proposal shall be based on new data on expenditure resulting from the increase or decrease.

Rates approved by the state or approved by the government are recognized by the hhs indirect cost rate group. Additional documents may be requested to justify the rate of indirect costs submitted. A letter documenting the decision to reject an indirect cost rate is sent to the sub-recipient. (a) Financial management services, the Division of Cost Allocation, the Programme Support Centre, determine the costs of installation and administration, also known as indirect cost rates, research patient care rates and, if necessary, ancillary services, computers and other special cost rates to be used in contracts awarded to state and local Governments, colleges and universities, hospitals and other not-for-profit organizations. Indirect costs are expenses that are necessary for the general and administrative functioning of the organization and that cannot be easily attributed to a specific grant, contract, activity or project function. Indirect costs are commonly referred to as overhead or installation and administration costs. These costs are considered common or shared and are incurred to support more than one cost target. A fixed transfer rate is an indirect cost rate that has the same characteristics as a predetermined interest rate, except that the difference between the estimated costs and the actual recoverable costs of the period covered by the rate is carried forward as an adjustment to the calculation of the rate for a later period. When determining the actual costs for that period, an adjustment shall be made to the rate of one or more future years in order to compensate for the difference between the costs used to determine the fixed interest rate and the actual costs.

Once an interest rate has been confirmed, it is in effect until the company requests a new rate or notifies HHS of changes to the existing rate. If there are any changes to your rates approved by federal agencies or other state agencies, you must notify the HHS Indirect Cost Rate Group via the Federal Funds Office sub-recipient`s homepage within 30 days of the change. Preliminary rates are the type of primary rate issued by the HHS indirect cost rate group. Provisional rates are preliminary estimates of the indirect cost rate and are used for a given period. Provisional rates must be set annually in order to determine the final actual amounts. The staggering of a provisional sentence leads to the establishment of a definitive rate. If the government-approved indirect cost rate is accepted by the hhs indirect cost rate group, a confirmation letter will be sent to the sub-recipient to confirm acceptance and use of this rate. Direct costs are expenses that can easily be attributed to a specific grant, contract, activity, project or program.

The HHS Indirect Cost Rates Group of the Federal Office of Funds is responsible for examining, negotiating and approving applications for indirect cost rates. Companies must provide the HHS Indirect Cost Rate Group with a copy of the negotiated indirect cost agreement currently approved. The agreement must be concluded within 30 days, otherwise the request will be cancelled and indirect costs may not be allowed. Sub-recipients or entities can complete applications, submit documents, contact the HHS indirect cost rate group or get help on indirect cost rates via the sub-beneficiary`s homepage of the Federal Office of Funds. Companies will be contacted within three working days of submitting a request. The following items are excluded from the calculation of the modified total direct costs. If the company wishes to use the uncovered indirect costs as consideration or for cost-sharing, a negotiated interest rate must be obtained. The amount of indirect costs is used to determine the share of indirect costs that the company can use as consideration or for cost sharing. HHS prior approval is required. Rejection of an indirect cost rate informs the HHS system that the company will not require indirect reimbursement for state or federal DSHS or HHSC premiums. .