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1. Fringe benefit rates. If overall fringe benefit rates are not approved for the governmental unit <br />as part of the central service cost allocation plan, these rates will be reviewed, negotiated and <br />approved for individual grantee agencies during the indirect cost negotiation process. In these <br />cases, a proposed fringe benefit rate computation should accompany the indirect cost proposal. If <br />fringe benefit rates are not used at the grantee agency level (i.e., the agency specifically <br />identifies fringe benefit costs to individual employees), the governmental unit should so advise <br />the cognizant agency. <br />2. Billed services provided by the grantee agency. In some cases, governmental units provide <br />and bill for services similar to those covered by central service cost allocation plans (e.g., <br />computer centers). Where this occurs, the governmental unit should be guided by the <br />requirements in Attachment C relating to the development of billing rates and documentation <br />requirements, and should advise the cognizant agency of any billed services. Reviews of these <br />types of services (including reviews of costing/billing methodology, profits or losses, etc.) will <br />be made on a case-by-case basis as warranted by the circumstances involved. <br />3. Indirect cost allocations not using rates. In certain situations, a governmental unit, because of <br />the nature of its awards, may be required to develop a cost allocation plan that distributes <br />indirect (and, in some cases, direct) costs to the specific funding sources. In these cases, a <br />narrative cost allocation methodology should be developed, documented, maintained for audit, or <br />submitted, as appropriate, to the cognizant agency for review, negotiation, and approval. <br />4. Appeals. If a dispute arises in a negotiation of an indirect cost rate (or other rate) between the <br />cognizant agency and the governmental unit, the dispute shall be resolved in accordance with the <br />appeals procedures of the cognizant agency. <br />5. Collection of unallowable costs and erroneous payments. Costs specifically identified as <br />unallowable and charged to Federal awards either directly or indirectly will be refunded <br />(including interest chargeable in accordance with applicable Federal agency regulations). <br />6. OMB assistance. To the extent that problems are encountered among the Federal agencies <br />and/or governmental units in connection with the negotiation and approval process, OMB will <br />lend assistance, as required, to resolve such problems in a timely manner. <br />57 <br /> <br />