Notes to SEFA
The Foundation negotiates and utilizes an indirect cost rate (NICRA) with the federal government. For the year ended December 31, 2025, 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, 2025, 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 the following: 1. The portion of subawards in excess of $25,000 2. Equipment purchases in excess of $1,000 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.
General and administrative expenses have been allocated to the various functions: direct health education and assistance programs, direct 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
None of the federal awards were expended in the form of noncash assistance, including federal insurances.