This guidance is for the recovery of Indirect Costs (IDC) on California Model Agreement (CMA) business contracts executed by the Office of Business Contracts and Brand Protection - BCBP (for agreements when the University is providing non-research services to a State of California agency, and no original works or publications will be produced).
IDC Allocation on CMA Business Contracts
When a campus unit submits a new CMA business contract to BCBP, the Financial Accounting and Controls Department (FAC) will coordinate with the unit to initiate the IDC assessment process for this contract.
The IDC allocation on CMA business contracts is assessed monthly by FAC, based on actual eligible expenses recorded to the general ledger, at the rate defined in the contract. The rate is applied to Modified Total Direct Costs (MTDC).
The IDC assessment is recorded to account 57365 Indirect Cost – Fund – Dept ID – PC- CF1 – CF2.
Department Responsibilities
- Expenses for each contract must be recorded to a unique chartstring to ensure that indirect costs are correctly assessed. A unique CF1 or CF2 value must be created by the department for each CMA contract and provided to FAC. UCPath position funding should also reflect the same unique chartstring for payroll expenses.
- Billing to the State Agency must be processed via the Berkeley Financial System - Accounts Receivables (BFS-AR) Module. See link below.
- Revenue must be recorded to account 46600 – CMA Contracts Revenue (this would ensure that revenue is not assessed AFC - administrative full costing).
Contact
For questions, please contact the Financial Accounting & Controls Department at gao@berkeley.edu