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U.S. Department of Health and Human Services
Indian Health Manual

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

Calculating Indirect Costs (IDC) Associated with
Recurring Service Unit Shares
and the Contract Support Costs Amount Using The 97/3 Method


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

Assumptions

  1. Tribe B has $600,000 in Recurring Service Unit Shares
  2. The Area and Tribe apply the "97/3 Split" pursuant to Section 6-3.2.E.3.b of this Chapter
  3. Pass-through & Exclusions = $80,000
  4. Indirect cost rate = 30%

Table 1.  IDC Calculation

Recurring Service Unit Shares amount

$600,000
Less 97/3 split

($18,000)

Sub-total Recurring Service Unit Shares for direct costs

$582,000

Less Pass-through & Exclusions

$(80,000)

Total of direct cost base for Recurring Service Unit Shares

$502,000

x 30% IDC rate to determine total IDC need for Recurring Service Unit Shares

$150,600

Table 2.  CSC Calculation Calculation

Total IDC need for Recurring Service Unit Shares

$150,600
Less 97/3 split

($18,000)

Indirect CSC amount

$132,600

Tribe B would receive $600,000 from Recurring Service Unit Shares and $132,600 would be funded for indirect CSC.

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