Contract Support Costs. Navajo Nation PL August 2, 2018

Transcription

1 Cntract Supprt Csts Navaj Natin PL August 2, 2018

2 IHS Business Principles & Gals Cmply with requirement t pay full CSC need Imprve cmmunicatin Imprve business practices cnsistency and fairness fr all Tribes Cntinued prgress n CSC Cntract Disputes Act claims Implement IHS CSC Plicy 2

3 IHS CSC Plicy DTLL letter dated Octber 27, 2016 Annuncing the new plicy The new plicy can be fund in the Indian Health Manual nline A new template was agreed t as part f the plicy discussins with the WG DTLL letter dated December 21, 2017 temprarily amended the CSC Plicy 3

4 IHS CSC Plicy Changes/Updates Overall gal is t simplify and streamline the prcess Includes Guiding Principles Expanded n definitins t assure and supprt brad understanding and cnsistent applicatin Startup and Pre-Award Pre-award csts are nt incurred during the initial 12 mnth perid, but prir t the assumptin f the prgram Within 90 after the initial year r 12 mnths, the Awardee will certify that all funds were spent (certificatin nly applies t startup csts) Pre-award need nt be certified because they shuld nt be paid in the first place withut evidence that they ve already been incurred

5 IHS CSC Plicy Changes/Updates Direct CSC Medical Inflatin Rate Apply the inflatin rate by the end f the first quarter (final percent issued in Nvember) Indirect CSC Determine if prir year CSC funds were expended; verify that the ttal health care are at least equal t the amunt IHS funded. If the expenditures d nt exceed the IHS funding prvided, the CSC calculatin is subject t calculatins utlined in E.1.a & b. 90 day clseut after cntract term available at ptin f the Tribe Use f Rates Fixed w/ Carry Frward current r ne year ld rate Prvisinal final 2 year final rate Allws fr grace perid fr

6 IHS CSC Plicy Indian Health Manual, Part 6 Chapter 3, Cntract Supprt Csts m_pc_p6c3#6-3.2e

7 What is CSC? Service Unit Shares à 106(a)(1) funds (Secretarial Amunt) à 106(a)(2) funds (CSC)

8 Cntract Supprt Csts Select Key Definitins The full amunt f CSC funding fr new, expanded, and nging cntracts r cmpacts, as determined under this chapter pursuant t 25 U.S.C. 5325(a). An amunt fr the reasnable csts fr activities which must be carried ut t ensure cmpliance with the terms f the cntract and prudent management but which: Nrmally are nt carried ut by the respective Secretary in his [her] direct peratin f the prgram; r Are prvided by the Secretary in supprt f the cntracted prgram frm resurces ther than thse under cntract. CSC that are eligible include the csts f reimbursing tribal cntractrs fr reasnable and allwable csts f Direct prgram expenses fr the peratin f the federal prgram that is the subject f the cntract any additinal administrative r ther expense related t the verhead incurred by the tribal cntractr in cnnectin with the peratin f the Federal prgram, functin, service, r activity pursuant t the cntract

9 Definitins and Explanatins Direct Cntract Supprt Csts Direct prgram expenses fr the peratin f the ISDEAA Prgrams that are the subject f the award, that therwise meet the definitin f CSC in 25 U.S.C. 5325(a). Pays fr activities that are nt funded in the Secretarial amunt r cntained in the IDC pl. See Plicy fr examples Duplicatin The Agency is required t accunt fr activities that may have already been funded in the Secretarial amunt with the riginal transfer f the prgram. Reasnable Csts A cst is reasnable if, in its nature and amunt, if it des nt exceed that which wuld be incurred by a prudent persn under the circumstances prevailing at the time the decisin was made t incur the cst.

10 Definitins and Explanatins Allwable Csts Be necessary and reasnable fr the perfrmance f the Federal award; cnsistent with plicies and prcedures; accrded cnsistent treatment (a cst cannt be a direct cst if any csts incurred fr the same purpse are treated as indirect csts t a different federal award); cnsistent with generally accepted accunting principles Indirect Cst Rate Negtiated with the Cgnizant Agency (IBC/DCA) Identifies indirect cst need, nt indirect cntract supprt cst need Indirect Csts Csts that have been incurred fr cmmn r jint purpses. These csts benefit mre than ne cst bjective and cannt be readily identified with a particular final cst bjective withut effrt disprprtinate t the results achieved.

11 Definitins and Explanatins Indirect Cntract Supprt Csts Administrative r ther expenses related t the verhead incurred by a cntractr in cnnectin with the peratin f ISDEAA prgrams pursuant t the cntract and that therwise meet the definitin f CSC in 25 U.S.C. 5325(a)(2)- (3). Based n a Tribe s Direct Cst Base times rate, and accunts fr reasnableness and duplicatin f activities that are included in the Tribe s106(a)(1) amunt. Exclusin Direct expenditures excluded frm the direct csts in rder t calculate the direct cst base t which the IDC rate is applied. These types f expenditures vary by awardee and are defined in the IDC rate agreement.

12 Definitins and Explanatins Passthrugh Expenditure Similar t exclusins in that pass-thrugh expenditures may be excluded frm the direct cst base t which the IDC rate is typically applied, thugh such expenditures als may be assigned a lwer nminal IDC rate. The IDC rate(s) shuld be applied t such expenditures cnsistent with the IDC rate agreement. Indirect-Type Csts Negtiated when a Tribe des nt have an IDC agreement with their cgnizant agency r requests such a negtiatin, even if they have a negtiated rate. IHS and the cntractr/cmpactr will negtiate a lump-sum amunt fr indirect-type csts that cnsists f thse categries f csts that nrmally are fund in IDC pls f cntractrs with rates and that are cnsistent with the requirements f 25 U.S.C. 5325(a)(2)-(3).Categries f typical csts are utlined in the plicy. Retained Service Funding which is eligible t be cntracted but fr which the awardee has chsen nt t cntract, and thus, fr which the IHS has retained assciated funding.

13 Che ck ne bx: Es timate f C SC ne e d Final CSC Re cnciliatin Che ck ne bx: Number FA Ame ndme nt # FA Cumulative Funding Re prt ( CFR) # Date Cmple te d: Tribe /Tribal Organizatin (T/TO): A Prgram (Service Unit) Funding $655, A.1 Expenditures frm carryver funds (fr which CSC was nt funded previusly), Net f pass- thrughs and exclusins $0.00 Cntract Supprt Csts (CSC) Negtiatin Template (FY 20XX) Example T/TO Subttals Ttals Surce f Inputs Recurring and Nn-Recurring Eligible Funding fr the T/TO's Prgrams, Functins, Services, r Activities (PFSA) at the Service Unit Level. Depending n the structure f an awardee's indirect cst (IDC) rate, this may include buy- backs. Pursuant t Sectin E.1.b.1.b.i. This is determined by whether the parties included the funds in the CSC calculatin in the year awarded and nt by h w the T/TO allcates funding in its accunting recrds. B Ttal Area Tribal Shares $75, Recurring and Nn-Recurring Eligible Funding fr the T/TO's PFSA at the Area Level (Area Office Tribal Shares, r A OTS). C Ttal Headquarters Tribal Shares $30, Recurring and Nn-Recurring Eligible Funding fr the T/TO's PFSA at the Headquarters Level (Headquarters Tribal Shares, r H QTS). D Ttal Secretarial Amunt $760, Items A + B + C (Ttal Recurring and Nn-Recurring eligible funding awarded under the Secretarial Amunt E.1 IDC Assciated With Recurring Service Unit Shares $0.00 Negtiated and calculated pursuant t Sectin E.3 either: (a) case-by-case analysis, r (b) 97-3 methd. E.2 IDC Assciated With Tribal Shares $21, Negtiated and calculated pursuant t Sectin E.4, either: (a) case-by-case analysis, r (b) methd. Ttal IDC Identified As Assciated With the E.3 Secretarial Amunt $21, This represents PFSA funded in the Secretarial amunt determined t be duplicative f T/TO IDC Pl. F Direct Csts F unded thrugh Secretarial A munt $739, Item D - E.3 G Prir Year Direct CSC (DCSC) Need $76, Per prir-year agreement. H Inflatin Factr 1.6% T be prvided by IHS when final inflatin rate fr previus year becmes available (usually in Nvember). Final rate wuld be used t update this amunt, and award T/TO inflatin n DCSC at the end f IHS's first quarter. See Sectin D.3. I.1 $77, I.2 Current Year DCSC Need $0.00 $77, I.3 Startup and Pre-Award Need $ D21-22 will autmatically incrprate either the prir-year DCSC need (reflected in D21) r, if there is a currentyear renegtiatin, the renegtiated amunt (reflected in D22). Summarizes the negtiatin fr Nnrecurring Pre-Award and Startup csts fr new r expanded PFSAs in the upcming year. J Ttal Direct Csts $818, Items F + I, but s ubject t Sectin 6-3.2, Paragraph E.1.a, Es timate f Indirect CSC Need and Funding Prir t the Cntract Year and E.1.b, Determinatin f Final Amunt fr Indirect CSC Need and Funding. K Less: Passthrughs and Exclusins $14, The amunt f passthrughs and exclusins funded by IHS. L Direct Cst Base $803, Item J - K Current IDC rate. If T/TO has multiple IDC rates, enter blended rate and submit detailed calculatin f the blended rate. M Mst current IDC rate 15.00% N IDC Need (Nn-Recurring) Based n IDC Rate $120, Item L * M (Direct Cst Base x IDC Rate) Credit fr IDC Assciated with the Secretarial Equals Item E.3 if the T/TO has higher than a 25.00% IDC rate; if T/TO has a rate f 25.00% r lwer the credit in Item O is based n the ttal IDC need fr Tribal Shares generated by the T/TO's rate plus the IDC Assciated with O Amunt $12, Recurring Service Unit Shares (Item E.1) P Current-Year Indirect C SC N eed $107, Item N - O (Ttal I DC need less credit fr I DC assciated with the Secretarial amunt Q IDC-Type Csts $0.00 As negtiated, pursuant t Sectin 6-3.2E.2; see als Exhibit G, ftnte 10. Enter $0 if the T/TO negtiates indirect CSC slely based n its IDC rate. R Current-Year Ttal C SC N eed $186, Items I.2 + I.3 + P + Q (Ttal need fr D CSC, indirect C SC, and P re-award and Startup) S Current-Year DCSC N eed $77, Item I.2 T Ttal D CSC Paid Year-t-Date $0.00 Ttal D CSC funding paid t the T/TO year-t-date. U Current-Year Indirect C SC N eed $107, Items P + Q V Ttal Indirect C SC Paid Year-t-Date $100, Ttal indirect C SC funding paid t the T/TO year-t-date. W Current-Year Startup and Pre-Award N eed $ Item I.3 X Ttal Startup and Pre-Award CSC Paid Year-t- Date $0.00 Ttal Startup and Pre-Award CSC funding paid t the T/TO year-t-date. Nte Regarding Sub -Awards: The template awards CSC n the direct cst base incurred by the T/TO. If the T/TO has an agreement(s) with a sub-awardee whse csts are eligible t be cnsidered in the CSC need f the T/TO AND the T/TO treats sub-awards as a passthrugh cst when determining its direct cst base, the ttal CSC negtiated can be adjusted t incrprate eligible csts specifically identified fr each sub-awardee (while recgnizing sub-awardee passthrughs and exclusins and the sub-awardee's indirect cst rate). Ftnte: This Template is a tl used by the Indian Health Service (IHS) fr calculating and negtiating CSC. Neither this Template nr any ther negtiatin dcuments creates a cntractual bligatin n behalf f either IHS r a T/TO. The CSC amunt that the parties agree is required under any Indian Self-Determinatin and Educatin Assistance Act (ISDEAA) agreement will be identified in the agreement itself. 15

14 Direct Cntract Supprt Csts Negtiating DCSC - IHS CSC Plicy Manual Exhibit 6-3-G, Sectin C Steps: 1. The Tribe must submit a prpsal The plicy identifies what the prpsal shuld typically include. Examples: Budget breakdwn Full Salary listing Detailed fringe benefit breakdwn Justificatin fr csts in ther budget categries that are being prpsed. 2. The IHS verifies the amunts in the prpsal Reasnableness Verify fringe rates that are identified May require requesting further dcumentatin frm Tribe

15 Direct Cntract Supprt Csts Steps cntinued: 3. T cmpute the DCSC requirement, the awardee and the IHS must negtiate the ttal cst t the awardee f the activities t be supprted with CSC. 4. The IHS reviews fr duplicatin f csts, identify any amunts that duplicate csts that are already included in the Secretarial amunt.

16 Indirect-Type Csts Awardees withut negtiated rates Or Awardee has an utdated rate The CSC plicy als prvides that Tribes can request such a negtiatin even if they have a negtiated rate Annual lump sum amunt verhead r indirect-type csts Management and Administratin; facilities and equipment; and general services and expenses Cannt duplicate Secretarial amunt r csts funded thrugh direct CSC.

17 CSC Recnciliatin Data updates Rate changes Pass thrughs and exclusins Changes in base funding Review fr reasnableness and duplicatin Cmmunicatin Overpayments - Ntice t Tribe Share dcumentatin used t calculate verpayment Fllw up with apprpriate amendments r mdificatins Cmmunicatin with Tribes Use f CSC Negtiatins template Agreement n CSC need and payment

18 FY 2018 DATASET - As f July 30 DRAFT ItemName Secretarial Amunt Ttal CSC Need Ttal CSC Paid Ttal CSC Deficiency 1 Alaska $ 526,623,597 $ 224,592,387 $ 211,378,185 $ 13,214,202 2 Albuquerque $ 64,746,678 $ 19,469,908 $ 19,375,305 $ 94,603 3 Bemidji $ 181,118,679 $ 42,119,420 $ 36,370,425 $ 5,748,995 4 Billings $ 62,762,474 $ 12,662,271 $ 9,585,860 $ 3,076,411 5 Califrnia $ 134,846,612 $ 60,085,287 $ 57,510,878 $ 2,574,409 6 Great Plains $ 117,437,547 $ 28,207,896 $ 3,515,509 $ 24,692,387 7 Nashville $ 122,972,060 $ 33,056,681 $ 31,973,561 $ 1,083,120 8 Navaj $ 184,174,039 $ 67,882,731 $ 35,190,319 $ 32,692,412 9 Okahma City $ 444,464,355 $ 140,753,737 $ 114,069,326 $ 26,684, Phenix $ 183,536,923 $ 54,293,345 $ 38,793,833 $ 15,499, Prtland $ 175,780,298 $ 60,662,456 $ 14,527,484 $ 46,134, Tucsn $ 53,370,276 $ 11,817,097 $ 11,458,701 $ 358,396 Ttal $ 2,251,833,537 $ 755,603,218 $ 583,749,386 $ 171,853,832

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20 Questins? Cntact Infrmatin: Rselyn Ts, Directr Office f Direct Service and Cntracting Tribes Phne: Rselyn.Ts@IHS.gv