Interpretive Guidance Documents
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New - 4/17/2015 - What is an Indirect Cost Rate Schedule?
We’re excited to announce our latest webinar on how to build your Indirect Cost Rate. In less than a couple of hours, we cover the essential elements of your Indirect Cost Rate Schedule and what you need to know before preparing your schedule.
This new webinar is provided in six small modules and we recommend that you watch the modules in order at your convenience. You can then go back to any individual module to review again if you choose to do so. Please print the sample, Indirect Cost Rate schedule (xls, 44kb) prior to viewing as reference to follow along.
We hope that you find this training helpful, and we welcome your feedback. Contact information is provided at the end of the last module.
Please let us know if you have suggestions for future training. This webinar can be made available in alternate formats at your request.
- What is an ICR schedule (wmv, 10.2 mb)
- What is an ICR schedule (pdf, 1.4 mb)
Module 1: In this module, you will see an overview of the Indirect Cost Rate schedule and the components that make up a schedule. The columns, sections, and where the numbers come from are explained. We also discuss the timetables involved with Indirect Cost Rates (when to adjust the rates and how long rates last).
- Process to create an ICR schedule (wmv, 16.7 mb)
- Process to create an ICR schedule (pdf, 1.9 mb)
Module 2: This module offers a general overview of the steps and processes involved in developing the Indirect Cost Rate schedule. This module discusses the ICR source documents including examples of labor distribution reports. We also discuss possible adjusting entries to reconcile labor if the end of the fiscal year does not land on a payroll date.
- Labor Components of the ICR (wmv, 84.4 mb)
- Labor Components of the ICR (pdf, 3.5 mb)
Module 3: This module describes the different labor components of the ICR schedule: direct labor, fringe benefits, and indirect labor. Direct labor is the basis for the indirect cost rate and includes all time worked on a specific project. This module explains the components of fringe benefits and describes the various categories of indirect labor. This module also discusses the importance of tracking all hours worked.
- Where do the ICR numbers come from? (wmv, 20.3 mb)
- Where do the ICR numbers come from? (pdf, 1.9 mb)
Module 4: This module explains how you arrive at the numbers on the ICR schedule and how the ICR schedule should represent your general ledger accounts. The module discusses how labor dollars on the ICR schedule should reconcile with the payroll system, income statement, and Labor Distribution Report.
- Labor Reconciliation (wmv, 71.3 mb)
- Labor Reconciliation (pdf, 1.4 mb)
Module 5: This module covers the labor reconciliation process. The module addresses the importance of performing monthly labor reconciliations; the components of labor reconciliations; and demonstrates how and when to perform labor reconciliations.
- Common Adjustments to the ICR schedule (wmv, 14.6 mb)
- Common Adjustments to the ICR schedule (pdf, 2.7 mb)
Module 6: This module covers some common expressly unallowable expenses per the Federal Acquisition Regulation Cost Principles, 48 CFR Part 31. The module addresses the regulation associated with the unallowable expense and any directly associated costs. The module provides contact information and links to additional guidance from various government entities.
Other Interpretive Guidance Documents
Audit Process Charts
AASHTO Audit Guide
The AASHTO Uniform Audit & Accounting Guide was developed by the American Association of State Highway and Transportation Officials (AASHTO), Audit Subcommittee, in concert with the American Consulting Engineering Counsel. The guide lays the framework for development of:
- Audit reports
- Associated reports on internal control
- Audits of transportation consultants' indirect cost rates
- Disclosure notes
Following the AASHTO guide allows for easier interpretation of the information contained in the reports, by both the audit and consultant community.
If you have any questions regarding this AASHTO guide, call the WSDOT Audit Office at 360-705-7003, or e-mail WSDOT Audit at firstname.lastname@example.org