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.

Recovery Act Funds Released for IHS Projects

On May 16, the U.S. Department of Health and Human Services announced in a press release that the Indian Health Service will release $500 million allocated for improvements in Indian health under the American Recovery and Reinvestment Act (ARRA) of 2009.

ARRA funds are to be expended by the IHS as follows: $227 million for health facilities construction, $100 million for maintenance and improvements, $85 million for health information technology, $68 million for sanitation facilities construction and $20 million for health equipment that will help improve health care in Indian Country.

“These Recovery Act funds will provide critical assistance to American Indian and Alaska Native communities,” IHS Director Yvette Roubideaux stated in the release. “These funds will help improve health care, create jobs and make our native communities stronger.”

To see a state-by-state list of all ARRA-funded IHS projects, click here.

$17 million Allocated for Tribal Transit Program

Last month the Department of Transportation allocated $17 million in federal funding under the American Recovery and Reinvestment Act, 2009 for the Federal Transit Administration’s Tribal Transit Program.

The ARRA tribal transit funds will provide grants to Indian tribes for capital expenditures including transit equipment and facilities.  A notice soliciting project proposals was published March 23 in the Federal Register.  The notice includes application procedures, the criteria that FTA will utilize to select projects, and grant terms, conditions, and reporting requirements.

Tribes will have 60 days to submit project proposals.  The Federal Register notice can be found at:http://www.fta.dot.gov/laws/leg_reg_federal_register.html.

Once projects are selected and funding is awarded, tribal recipients must obligate funds by September 30, 2010.  Interested parties are encouraged to contact the nearest FTA Regional Office for additional information on the ARRA Tribal Transit Program.  A contact list of FTA regional offices may be found at http://www.fta.dot.gov/.