Wednesday, January 18, 2017, the Principal Deputy Assistant Secretary – Indian Affairs Lawrence Roberts issued an updated Contract Support Costs (CSC) Policy for the Indian Affairs Manual (IAM). The updated Policy reflects extensive Tribal consultation and the work of the Bureau of Indian Affairs’ (BIA) CSC Workgroup, which is comprised of Tribal and Federal experts.
The updated Policy provides for the full payment of CSC and helps ensure that the payment of CSC is accurate, timely, and meets 100 percent of a Tribe’s CSC need as calculated under the Policy. The Policy also simplifies and streamlines CSC calculation to expedite payment.
Many of the key components of the updated policy involve the calculation and payment of CSC. After hearing from Tribal Leaders about the burdens of increased employee health insurance premiums, increased facilities support costs, and additional administrative expenses, direct CSC will now be calculated as 18 percent of Tribal budgeted salary costs, not including fringe, of section 106(a)(1) programs. In addition, the policy provides a simplified method for calculating indirect CSC for smaller Tribes that do not meet the single-audit threshold for funding and do not have an approved IDC rate that is four or fewer years old. These provisions will provide administrative and financial relief to Tribes that will ensure they are not forced to use program funding to cover administrative costs.
You can review the full Policy here.