Indirect Cost Alert – ARRA Awards do Include Overhead Costs

There has been some confusion over the ability of tribes to collect indirect costs from funding received under the American Recovery and Reinvestment Act (ARRA). Contrary to previous statements made to tribal leaders, overhead costs may be covered with ARRA funds. Even though the contract support costs will not be added onto the ARRA awards, tribes can apply their approved IDC rate to these funds to determine how much of the money can be allocated for overhead. However, if you receive ARRA funding through an existing or new program which places a cap on indirect costs, then the cap will still apply.

Here is a link to a document from Health and Human Services that might prove helpful. For more information, contact Richard Phelps, 1-800-992-4489, extension 101.