U.S. Department of Health and Human Services

Part 6, Chapter 3: Manual Exhibit 6-3-B

Calculating Indirect Costs (IDC) Associated with
Tribal Shares and the Contract Support Costs Amount Based
On A Detailed Analysis

(This Exhibit does not cover DCSC (Footnote /1)

Assumptions:

Tribe A has $100,000 in Area and Headquarters Tribal Shares
Based on a detailed analysis, IHS and the Tribe agree that $10,000 of Tribal shares are associated with IDC in Tribe A's IDC pool, pursuant to Section 6-3.2.E.4.a. of this Chapter
No pass-through or exclusions
Indirect cost rate = 30%

Table 1. IDC Calculation

Tribal Shares Amount	$100,000
Less agreed-upon Tribal Shares amount associated with costs in the IDC pool	($10,000)
Sub-total of Tribal Shares for direct costs	$90,000
Less Pass-through & Exclusions	$0
Total of direct cost base for Tribal Shares	$90,000
x 30% IDC rate to determine total IDC need for Tribal Shares	$27,000

Table 2. Indirect CSC Calculation

Total IDC need Tribal Shares	$100,000
Total IDC need for Tribal Shares	$27,000
Less agreed-upon Tribal Shares amount associated with costs in the IDC pool	($10,000)
Indirect CSC amount	$17,000

Tribe A would receive $100,000 from Tribal Shares and $17,000 would be funded for indirect CSC.

Footnote 1: See Indian Health Manual Section 6-3.2.E.