Indirect Cost Proposal Checklist
Non-Profits and Commercial Organizations
1. Administrative documents:
1a. ____Organizational chart
2a ____Nonprofits - Narrative explaining compliance with 2 CFR §200.430(a)(1)(2) & (3) and the standards for
documentation of personnel expenses.
Commercial - Narrative explaining the standards for documentation of personnel expenses in compliance with
FAR 9.106-4 and SF-1408.
For both entities, an example of an employee timesheet for a pay period, providing for distribution of hours to
direct/indirect functions.
1c. ____Signed Cost Policy Statement providing, in part, narrative explaining allocation of direct and indirect costs.
NEW - Idle facilities/Idle capacity and space utilization - Narrative explaining compliance with 2 CFR § 200.446 for non-
profits or 31.205-17 for commercial entities as part of Cost Policy Statement. For background and additional
guidance, see further below. The narrative should also include operating procedures for evaluation and assessment
of reasonable space utilization considering staff working:
• in-office 100% of the time,
• working in-office and teleworking (“hybrid”) from a remote location one or more days per week, and
• remotely 100% of the time.
2. An indirect cost rate proposal(s) providing the following:
____2a. Personnel Costs Worksheet, including fringe benefits breakdown.
____2b. Allocation of Personnel Worksheet, providing indirect/direct time charges, indicating full or
partial year employment for applicable staff, and telework status (see 1.c. above).
____2c. Fringe Benefits Worksheet,
____2d. Statement of Total Costs, supporting the indirect and direct costs incurred by expense category,
identified by Federal agency, specific government grant, contract, and other non-government activities.
____2e. Statement of Indirect Costs, including indirect cost pool(s), allocation base(s), and indirect cost rate(s)
proposed.
3. ____Audited financial statements, if available, to support actual costs. For non-profits with direct Federal
funding over $750,000, annually, must provide audited financial statements. Under $750,000 for nonprofits,
please provide IRS Form 990 as support. For commercial entities, compilation/review financial statements
are also acceptable. Note: The Statement of Total Costs (2d. above) based on actual costs must reconcile to
Financial Statements. If not, please provide a reconciliation statement.
4. ____Certification that the indirect cost rate proposal was prepared in a manner consistent with the
applicable cost principles set forth in 2 CFR Part 200, Subpart E & Appendix IV for non-profits, or FAR Part
52.242-4 for commercial organizations. The certificate must be signed on behalf of the organization by an
individual at a level no lower than vice-president or chief financial officer for the organization.
5. ____A listing of grants and contracts by Federal agency, subagency, program office funding source,
award amount, period of performance, and the indirect cost (overhead) limitations (if any) applicable to
each, such as, ceiling rates or amounts restricted by administrative or statutory regulations, applicable to
the period(s) of the proposal(s). This listing must be supported with copies of the approved federal grants
or contracts notification awards (1
st
page).
Note: For organizations receiving funding from DOL-ETA, please ensure that the proposed individual
compensation (salary and bonus) complies with limitations established. Contact CPDD for more details.
:
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Please submit separate electronic files as part of proposal corresponding with checklist items to your assigned cost
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Ensure that no personal identifiable information (PII; Ex. social security numbers) is submitted with the proposal.
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For item # 2, please submit one Excel workbook or similar format.
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Examples of exhibits supporting the proposal are available in Section III of this guide.