Indirect Implementation

Indirect Implementation

In February 2019, the City of New York adopted the Health and Human Services (HHS) Cost Policies and Procedures Manual (Cost Manual) to standardize cost allocation practices for HHS contracts and Indirect Cost Rate (ICR) calculations. The Cost Manual is intended to be a living document that is updated from time to time.

The Fiscal Year 2020 Adopted Budget established an ICR Funding Initiative based on the Cost Manual, managed by the Office of Management and Budget and Mayor’s Office of Contract Services through the City Implementation Team (CIT). The CIT established a Provider Work Group to advise on the rollout and implementation of the Funding Initiative.

The details of the ICR Funding Initiative were announced by the CIT and City Council on October 7, 2019, with claiming for indirect cost rates and funding opening on November 18, 2019, and closing on December 31, 2020. This Webpage contains information and resources that the CIT shared with the sector throughout the ICR Funding Initiative. While the Funding Initiative is now closed, organizations should continue to consult the Cost Manual to ensure that their human services cost allocations align with City guidelines.

ICR Claiming Closed December 31, 2020

Providers that received an Accepted ICR for Fiscal Year 2020 have an ICR valid through Fiscal Year 2022 (June 30, 2022). Providers that received an Accepted ICR in Fiscal Year 2021 have an ICR valid through Fiscal Year 2023 (June 30, 2023). Providers that did not apply for or receive an Accepted ICR from the City by December 31, 2020 have an Accepted ICR of 10% de minimis. This default rate is effective beginning Fiscal Year 2021 and valid through Fiscal Year 2023.

FY20 and FY21 ICR Funding Amendments

For providers with Delta Templates approved in Fiscal Years 2020 or 2021, the City will be issuing ICR Amendments through PASSPort, the City’s Procurement and Sourcing Solutions Portal. Additional funding through an ICR Amendment may only be used by a provider for indirect costs. Providers may contact their contracting agency for questions about their amendment.  Please contact help@mocs.nyc.gov for questions about PASSPort. For more information about the implementation of FY21 funding, please consult this webinar that includes Initiative updates and answers to questions received from providers.

Using an Accepted ICR and Budget Modifications

We have received a number of questions regarding the use of budget modifications to fund Accepted ICRs. We offer the following tips and information:

  • A provider may use its Accepted ICR to develop its HHS contract budget(s) pursuant to the Accepted ICR validity dates provided above.
  • For budgets where providers have surplus funding in their direct costs, they may request a budget modification to reallocate funds to their indirect costs, up to their Accepted ICR.
  • Providers do not need to wait for registration of their ICR Amendment in order to request a budget modification within its existing budget.
  • In exercising a budget modification request, providers may use the HHS Accelerator Financials automatic budget modification, which allows for expedited budget modifications up to 10% (cumulative) of the total contract value without preapprovals or delays in invoicing.
  • Budget Modifications may be made between categories of Personnel Services (PS) and Other Than Personnel Services (OTPS), maximizing budget flexibility.

Please see the following instructional materials on budget modifications:

Archive of Resources

Archive of Email Communications

Over the course of this initiative, the CIT sent weekly emails to the sector. In total, more than 60 emails were sent between September 2019 and December 2020. Please find below an archive of emails.