Title: 2) Indirect Cost Recovery Rate
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of The Carter Center, Inc. and subsidiary (the Center) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the U.S. Office of Management and Budget (OMB) Uniform Guidance. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Indirect costs are applied to Federal grants in accordance with requirements of the various grants being administered. The Center did not elect to use the 10% de minimis indirect cost rate as discussed in Uniform Guidance Section 200.414. The maximum rate applied to 2022 expenses was the approved provisional rate of 9.53% which was amended to 15.57% on June 29, 2022. The difference between the actual and provisional rates will be realized as a retroactive adjusting entry applicable to each Federal award. For purposes of calculating the indirect cost recovery rate, common area and depreciation expense are included in management and general operating expenses. The following table presents the Centers indirect cost as a percentage of direct cost base calculation for the year ended August 31, 2022: Direct ManagementProgram Fundraising Communications and General TotalTotal operating expenses $ 288,886,092 11,133,504 1,685,796 11,562,533 313,267,925 Less:Usage of contributed goods in-kind (190,216,746) (190,216,746) Support expenses embedded inprogram units (5,618,470) 5,618,470 Expenses related to revenuegenerating events (66,627) (66,627) Bid & proposal expenses (1,272,451) 1,272,451 $ 93,050,876 9,861,053 1,685,796 18,386,827 122,984,552 Indirect Costs:Management & General $ 18,386,827 Direct Cost Base:Direct Program 93,050,876 Fundraising 9,861,053 Communications 1,685,796 $ 104,597,725 Indirect Cost Recovery Rate 17.58 %