Audit 9247

Title: DIRECT AND INDIRECT FEDERAL AWARD EXPENDITURES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the direct and indirect expenditures of federal financial assistance programs administered by The Research Foundation for The State University of New York (the RF). The information in this 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 (Uniform Guidance). The amounts reported were obtained from the RF’s general ledger, which is the source of the federal financial reports and is maintained on an accrual basis. However, the Schedule is prepared on the cash basis. Negative amounts represent adjustments to expenditures reported in prior years in the normal course of business. Pass through amounts are reported under the related Assistance Listing number, as indicated on the schedule. Assistance Listing and pass-through numbers are presented where available. Amounts passed through to subrecipients are reported separately on the Schedule. De Minimis Rate Used: N Rate Explanation: The RF uses an indirect cost rate per the terms of a negotiated indirect cost rate agreement rather than the 10% de minimis rate as described in Section 200.4144 of the Uniform Guidance. Federal award expenditures consist of direct and indirect costs, which are commonly referred to as facilities and administrative (F&A) costs. Direct costs are those that can be easily identified with an individual federally sponsored project. The salary of a principal investigator of a sponsored research project and the materials consumed by the project are examples of direct costs. Unlike direct costs, indirect costs cannot be easily identified with an individual federally sponsored project. Indirect costs are the costs of services and resources that benefit both sponsored and nonsponsored projects and activities. Indirect costs consist of expenses incurred for administration, library, plant maintenance, and building and equipment depreciation. The RF and federal agencies use an indirect cost rate to charge indirect costs to individual federally sponsored projects. The rate is a result of a number of complex cost allocation procedures that the RF uses to allocate its indirect costs to both sponsored and nonsponsored activities. Rates are negotiated with and approved by the RF's cognizant audit agency, the U.S. Department of Health and Human Services.