Indirect: Figuring a Base Rate

Ok....I'm going to explain this to myself. Below is an note taken from the NIH example Excel spreadsheet for calculating indirect costs.

1. Rate Base Determination: The base is used to allocate Indirect (Overhead/G&A) costs equitably to ALL PROJECTS (Direct, IR&D and Commercial). The base can be direct salaries and wages, direct salaries and wages plus fringe benefits, total direct costs (no exclusions), or modified total direct costs (e.g., total direct costs excluding equipment, total direct costs excluding equipment and subcontract costs in excess of $25,000 per subcontract per project period [as used in this example], etc.). The base an organization chooses to allocate Indirect (Overhead/G&A) costs should result in an EQUITABLE ALLOCATION OF INDIRECT COSTS TO ALL PROJECTS.

For example; if the organization has a mixture of commercial and NIH awards and the commercial is heavy in materials while the NIH awards are heavy in direct salaries and wages, the base should be total direct costs and not just direct salaries and wages. However, if an organization only had NIH awards which are all heavy in direct salaries and wages than the base could be direct salaries and wages.

2. IR&D: It is NIH's/DHHS's policy to exclude IR&D costs from the Indrect cost pool and include it in the Indirect cost base, thus, these values include element costs relating to both "Direct" and IR&D activities.

Taking Item 1 first, I've extracted the following points:

• There are four methods for allocating the base. These include:
  1. Direct Salaries and Wages
  2. Direct Salaries and Wages + Fringe Benefits
  3. Total Direct Costs with no exclusions
  4. Modified Total Direct Costs
  
  
• Modified total Direct Costs are calculated by taking the total direct costs excluding equipment, and amount of subcontracts over $25,000). MTDC comes up in F.A.R. (the Federal Aquisition Regulations, and regularly shows up in DOD calculations. The FAR subpart 42.7 discusses indirect rates but, as always, it references the canon, which includes the OMB budget documents A-21 for educational institutions, A-87 for state and local governments and Indian reservations, and A-122 for non-profits.
• So, as near as I can figure out, you choose which of the four allocation methods by figuring out if you are "heavy" in people, or in materials.

What about the common situation of a start-up organization that has a single funded project? Jim and Gail Greenwood address this question.

We sometimes hear from start-up firms that they don’t have any indirect costs since they will only have this one SBIR project and therefore all of their costs would be direct ones. This likely is not true. Even a one-project company is probably going to be preparing other proposals, keeping time sheets (as required by the SBIR agencies), filing tax reports, doing some schmoozing to improve their chances of a Phase II award, etc—all of these costs suggest that this firm has indirect costs and needs to calculate an indirect rate to bill for them.

Journal for Grass Roots Fundraising

Who says that direct mail doesn't work anymore? Today I received a flyer from Grassroots Fundraising Journal. $35.00 for six issues. Topics taken from the flyer:

• Step-by-Step Guide to Organizing a Fundraising Dinner
  
• How to Raise $50,000 in six Weeks
  
• 53 Ways for Board Members to Raise $1000 (I'm hoping that is each, not the full board)
  
• Creating a Budget for Fundriasing
  
• Contracts with Board Members: a Working Model
  

But there is nothing in the list about social networking, or internet fundraising. Their web site has a considerable amount of basic information. A search for 'internet' on the site reveals a number of articles available behind their pay wall.

Ubuntu Linux rescues Windows XP Embedded

This being summer, we're back on the Windows XP Embedded kick. After generating an image, the question was..how do we get this on to our target machine?

We wasted a lot of time on this one. As recommended in the docs, we installed "regular" Windows XP on the target machine to make sure that it would run Embedded. No problem there, it installed without problems from CD. We ran the Target Analyzer, to get our device.pmq. Copied device.pmq back to the development machine and generated the image.

At this point, we started fiddling with a second partition on the target machine. We created and formatted this using Acronis Disk Doctor, which comes on a bootable CD. Our plan was to install our target image on this partition, change the ARC listing in boot.ini to point to the second partition as the boot partition. We spent a day fooling with this, including changing the drive letters, hiding the partition, moving stuff around. Didn't work.

Finally, we reformatted the hard drive on the target machine. Now you'd think that Microsoft would have something like a "LiveCD" for this purpose, which would boot a version of Windows enough to allow copying to an existing hard drive. It doesn't, but Ubuntu, Suse, and Fedora Linux all have this, and Ubuntu had drivers that would read the USB drive where we stored the image, as well as the NTFS formatted hard drive.

A quick drag and drop, and we're done!

Have they no shame? (Microsoft that is...) There is a Community Technology Preview out for a new version of Embedded...let's hope this issue might be addressed with a couple of extra tools.

Introduction June 1, 2008

Welcome to Tech for Non-Profits, the unplugged version of Microdesign Consulting. Part lab-notebook, part brain-extension, it is a repository for new and evolving ideas and projects that we stumble across as we move our former database development and network support company into startup mode for a technology-based home health-care delivery service provider. Being grant-funded ourselves, we're very much looking over the the grant landscape.

We are located in the Vermont Center for Emerging Technologies which is itself a nonprofit. Our major extracurricular activity is the Vermont Software Developer's Alliance, a non-profit trade group which promotes economic development in our area, primarily for software development companies.