Title: Indirect Rate Calculation
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Project HOPE - The People-to-People Health Foundation, Inc. and Subsidiaries (the “Foundation”) under programs of the federal government for the year ended December 31, 2023. Included in the Schedule are the expenditures of the following consolidated entities: Project HOPE - The People-To-People Health Foundation (Namibia) Inc. and Yayasan Project HOPE. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). The accompanying other supplemental information consists of the schedule of indirect cost allocation rates and schedule of program services expenses (the "other supplemental information") and includes direct and indirect cost activity of the Foundation under programs of the federal government for the year ended December 31, 2023. The information in the other supplemental information is presented for the purpose of additional analysis and is not a required part of the consolidated financial statements. Because the Schedule and other supplemental information present only a selected portion of the operations of the Foundation, they are not intended to and do not present the financial position, changes in net assets, functional expenses, or cash flows of the Foundation. Expenditures reported in the Schedule and other supplemental information are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass-through entity identifying numbers are presented where available. The Foundation has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance, except for the consolidated entities described in Note 1.
De Minimis Rate Used: N
Rate Explanation: The Foundation has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance, except for the consolidated entities described in Note 1.
The Foundation negotiates and utilizes an indirect cost rate (NICRA) with the federal government. For the year ended December 31, 2023, the Foundation's approved provisional rate for health education and assistance and health policy programs is 31.85 percent and 23.29 percent, respectively. For the year ended December 31, 2023, the Foundation did not have any U.S. Government funded health policy programs. The Foundation recognized revenue and incurred expenditures as reported on the Schedule based on the current provisional rate, as noted above, and does not intend to reclaim the higher NICRA due to its localization strategy, impacting the NICRA base for projects in Namibia and Indonesia. This was a one-time occurrence, as the Foundation anticipates its NICRA to remain stable at the existing provisional rate.
Program management and technical assistance costs are indirect costs as shown below:
Health education and assistance programs costs include the costs associated with operations, program planning, strategic planning, medical and health services, and the international administrative division.
Health policy programs costs include all costs specifically assigned to cost centers designated for general program costs, as well as the administrative costs for the Health Affairs Journal.
In accordance with the Foundation’s indirect cost rate agreement, the application base is direct costs, excluding:
1. The portion of subcontracts in excess of $25,000
2. Equipment purchases in excess of $5,000
3. The fair value of distributions of gifts-in-kind donations
4. Fundraising costs
5. Conference costs
Handling costs of materials are included as part of the direct cost for each direct cost base function. Donated services are included in the indirect rate cost base.
Title: Distribution of General and Administrative Expenses (in Thousands)
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Project HOPE - The People-to-People Health Foundation, Inc. and Subsidiaries (the “Foundation”) under programs of the federal government for the year ended December 31, 2023. Included in the Schedule are the expenditures of the following consolidated entities: Project HOPE - The People-To-People Health Foundation (Namibia) Inc. and Yayasan Project HOPE. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). The accompanying other supplemental information consists of the schedule of indirect cost allocation rates and schedule of program services expenses (the "other supplemental information") and includes direct and indirect cost activity of the Foundation under programs of the federal government for the year ended December 31, 2023. The information in the other supplemental information is presented for the purpose of additional analysis and is not a required part of the consolidated financial statements. Because the Schedule and other supplemental information present only a selected portion of the operations of the Foundation, they are not intended to and do not present the financial position, changes in net assets, functional expenses, or cash flows of the Foundation. Expenditures reported in the Schedule and other supplemental information are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass-through entity identifying numbers are presented where available. The Foundation has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance, except for the consolidated entities described in Note 1.
De Minimis Rate Used: N
Rate Explanation: The Foundation has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance, except for the consolidated entities described in Note 1.
General and administrative expenses have been allocated to the various functions: direct and indirect health education and assistance programs, direct and indirect health policy programs, and fundraising, in the ratio that the total adjusted costs for each of those functional areas bears to the aggregate total costs for all of those functional areas, as follows: See the Notes to the SEFA for table.