Accounting for your NSF SBIR award can get tricky at times. Each type of government award has it’s own intricacies that aren’t always clear. Because of this, we created an entire page on some basic principles you should know as a government contractor when doing the accounting for you NSF SBIR grant.
The National Science Foundation (NSF) was formed in 1950 to support research and education in all fields that are not categorized as medical, which includes the science and engineering fields. The NSF annual budget exceeds over 7 billion dollars and spends about 25% of that on funding research towards colleges and universities. Its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs receive over 50,000 grant proposals a year, where about 10,000 are chosen on which rank highest in the merit review process.
The pre-award survey is done after completion of the NSF questionnaire, which is administered by the NSF and possibly an external CPA firm.
NSF SBIR/STTR Accounting Principles
Rates
Rates- Indirect Rate Structure – Your company can either do Fringe and F&A, or F&A only.
- Provisional Rates – Safe rates are available. If negotiating a rate in excess of safe rates, a proposal is required and reviewed by the NSF.
- Final Proposed Indirect Rates – Not required if using a safe rate. Otherwise, proposed final indirect rate package is due no later than six-months after the end of the fiscal year.
- Indirect Rate Audits – Conducted by the DCAA, typically within 1-3 (sometimes more) years after submission.
Costs
Costs- Fringe Costs – Included in the F&A cost pool when separate fringe rate doesn’t exist. Otherwise, it’s included in the fringe cost pool. ghnhgnghnhg hgnhgnghnhg hgnhgngh h
- Overhead Costs – Included in the F&A cost pool.
- G&A Costs – Included in the F&A cost pool.
Allowability of Costs
Allowability of Costs- IR&D – Unallowable and treated in a manner similar to direct costs where the costs are in the F&A base.gh ghnhgngh ghnghnhgngh ghnhgnghngh hgnghnhg hg
- Meals – Allowable, subject to federal per diem limitations.
- Bank Fees – Allowable.
Pools and Bases
Pools and Bases- Fringe Cost Pool – If a fringe cost exists, this will be under total allowable fringe costs.hnghgngh ghnghnghnghngh hgnhgnhgnhgn ghnghnhg hgnghnghngh
- Fringe Base – Total productive labor (total labor, less vacation, sick, holiday, or other paid-time-off).
- F&A Cost Pool – Total allowable indirect costs (excluding fringe costs if a fringe rate exists).
- F&A Base – Total direct costs (plus fringe on direct labor), plus total IR&D costs (plus fringe on IR&D labor).