RATE DETERMINED BY PERSONAL SERVICES AND/OR TOTAL COSTS - 9202.1-MAR-2010
Method A in the 9202 Illustration distributes indirect costs using a rate that includes personal services or total costs. This method is typically used for distributing administration (personal services and OE&E) and some other OE&E costs.
Administration costs include all costs for executive staff and staff support organizational units. Examples are executive policy and planning, general administration, budgeting, accounting, personnel, business services, management analysis, training, and legal. Administration costs are distributed to the programs based on the most appropriate method for the work activity.
OE&E indirect costs distributed by method A may include miscellaneous office supplies, postage and printing, equipment rental, telephone charges and utilities.
The allocation percentage rate for method A is determined by dividing (1) personal services costs for a program by the total personal services costs for all programs or (2) total costs for a program by total costs for all programs.