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(2) All costs included in this proposal are properly allocable to Federal awards on the basis of a <br />beneficial or causal relationship between the expenses incurred and the agreements to which they <br />are allocated in accordance with applicable requirements. Further, the same costs that have been <br />treated as indirect costs have not been claimed as direct costs. Similar types of costs have been <br />accounted for consistently and the Federal Government will be notified of any accounting <br />changes that would affect the predetermined rate. <br />I declare that the foregoing is true and correct. <br />Governmental Unit: ________________________ <br />Signature: ________________________ <br />Name of Official: ________________________ <br />Title: _________________________ <br />Date of Execution: _________________________ <br />E. Negotiation and Approval of Rates. <br />1. Indirect cost rates will be reviewed, negotiated, and approved by the cognizant Federal agency <br />on a timely basis. Once a rate has been agreed upon, it will be accepted and used by all Federal <br />agencies unless prohibited or limited by statute. Where a Federal funding agency has reason to <br />believe that special operating factors affecting its awards necessitate special indirect cost rates, <br />the funding agency will, prior to the time the rates are negotiated, notify the cognizant Federal <br />agency. <br />2. The use of predetermined rates, if allowed, is encouraged where the cognizant agency has <br />reasonable assurance based on past experience and reliable projection of the grantee agency's <br />costs, that the rate is not likely to exceed a rate based on actual costs. Long-term agreements <br />utilizing predetermined rates extending over two or more years are encouraged, where <br />appropriate. <br />3. The results of each negotiation shall be formalized in a written agreement between the <br />cognizant agency and the governmental unit. This agreement will be subject to re-opening if the <br />agreement is subsequently found to violate a statute, or the information upon which the plan was <br />negotiated is later found to be materially incomplete or inaccurate. The agreed upon rates shall <br />be made available to all Federal agencies for their use. <br />4. Refunds shall be made if proposals are later found to have included costs that (a) are <br />unallowable (i) as specified by law or regulation, (ii) as identified in Attachment B of this <br />Circular, or (iii) by the terms and conditions of Federal awards, or (b) are unallowable because <br />they are clearly not allocable to Federal awards. These adjustments or refunds will be made <br />regardless of the type of rate negotiated (predetermined, final, fixed, or provisional). <br />F. Other Policies. <br />56 <br /> <br />