Notice of Indirect Cost Rates for the National Marine Sanctuary Program for Fiscal Year 2004, 33979-33980 [07-3018]

Download as PDF Federal Register / Vol. 72, No. 118 / Wednesday, June 20, 2007 / Notices practice, and their determination respecting the most appropriate indirect cost methodology and rates can be obtained from: Harriet Sopher, NMSP 1305 East West Highway, Silver Spring, MD 20910. C&C reaffirmed that the Direct Labor Cost Base is the most appropriate indirect allocation method for the development of the FY 2005 indirect cost rates. The NMSP’s Indirect Cost Rates and Policies The NMSP will apply the indirect cost rates for FY 2005 as recommended by C&C for each of the NMSP component organizations as provided in the following table: NMSP component organization FY 2004 indirect rate (percent) SUMMARY: The National Oceanic and Atmospheric Administration’s (NOAA’s) National Marine Sanctuary Program (NMSP) is announcing the establishment of new indirect cost rates on the recovery of indirect costs for its component organizations involved in natural resource damage assessment and restoration activities for fiscal year (FY) 2004. The indirect cost rates for this fiscal year and dates of implementation are provided in this notice. More information on these rates and the NMSP policy can be obtained from the address provided below. FOR FURTHER INFORMATION CONTACT: Harriet Sopher, 301–713–3125, ext. 271; (FAX: 301–713–0404; email: Harriet.Sopher@noaa.gov. The mission of the NMSP with respect to 247.63 Natural Resource Damage Assessment is to restore injuries to sanctuary resources 408.76 caused by releases of hazardous substances or oil under the Comprehensive Environmental The FY 2005 rates identified in this Response, Compensation, and Liability policy will be applied to all damage Act (CERCLA) (42 U.S.C., 9601 et seq.) assessment and restoration case costs or the Oil Pollution Act of 1990 (OPA) incurred between October 1, 2004 and (33 U.S.C., 2701 et seq.), or physical September 30, 2005, using the Direct injuries under the National Marine Labor Cost base allocation methodology. Sanctuaries Act (NMSA) (16 U.S.C., For cases that have settled and for costs 1431 et seq.). The NOAA NMSP consists claims paid prior to the effective date of of the following component the fiscal year in question, the NMSP organizations: Thirteen Marine will not re-open any resolved matters Sanctuaries and one National for the purpose of applying the rates in Monument within NOAA’s National this policy. For cases not settled and Ocean Service. The NMSP conducts cost claims not paid prior to the Natural Resource Damage Assessments effective date of the fiscal year in (NRDAs) as a basis for recovering question, costs will be recalculated damages from responsible parties and using the rates in this policy. The NMSP uses the funds recovered to restore will use the FY 2005 rates for future injured sanctuary resources. fiscal years until year-specific rates can When addressing NRDA incidents, be developed. the costs of the damage assessment are Dated: June 11, 2007. recoverable from responsible parties who are potentially liable for an Daniel J. Basta, Director, National Marine Sanctuary Program. incident. Costs include direct and indirect costs. Direct costs are costs for [FR Doc. 07–3017 Filed 06–19–07; 8:45 am] activities that are clearly and readily BILLING CODE 3510–NK–M attributable to a specific output. In the context of the NMSP, outputs may be associated with damage assessment DEPARTMENT OF COMMERCE cases, or may be represented by other program products such as damage National Oceanic and Atmospheric assessment regulations. In contrast, Administration indirect costs reflect the costs for activities that collectively support the Notice of Indirect Cost Rates for the National Marine Sanctuary Program for NMSP’s mission and operations. For example, indirect costs include general Fiscal Year 2004 administrative support and traditional AGENCY: National Oceanic and overheads. Although these costs may Atmospheric Administration (NOAA), not be readily traced back to a specific Commerce. direct activity indirect costs may be SUPPLEMENTARY INFORMATION: National Marine Sanctuary Program (NMSP) ............ NMSP Florida Keys National Marine Sanctuary (FKNMS) ......................... rwilkins on PROD1PC63 with NOTICES Notice of indirect cost rates for the National Marine Sanctuary Program for fiscal year 2004. ACTION: VerDate Aug<31>2005 18:25 Jun 19, 2007 Jkt 211001 PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 33979 allocated to direct activities using an indirect cost distribution rate. Consistent with standard Federal accounting requirements, the NMSP is required to account for and report the full costs of its programs and activities. Further, the NMSP is authorized by law to recover reasonable costs of damage assessment and restoration activities under CERCLA, OPA, and the NMSA. Within the constraints of these legal provisions and their regulatory applications, the NMSP has the discretion to develop indirect cost rates for its component organizations and formulate policies on the recovery of indirect cost rates subject to its requirements. The NMSP’s Indirect Cost Effort In October 2002, the NMSP hired the public accounting firm Cotton & Company (C&C) to: (1) Evaluate the cost accounting system and allocation practices; (2) recommend the appropriate indirect cost allocation methodology; and, (3) determine the indirect cost rates for the organizations that comprise the NMSP. The NMSP requested an analysis of its indirect costs for fiscal year 2002. The goal was to develop the most appropriate indirect cost rate allocation methodology and rates for the NMSP component organizations. C&C has continued its assessment of the NMSP’s indirect cost rate system and structure from FY2002 to present. C&C concluded that the cost accounting system and allocation practices of the NMSP component organizations are consistent with Federal accounting requirements. C&C also determined that the most appropriate indirect allocation method was the Direct Labor Cost Base for all NMSP component organizations. The Direct Labor Cost Base is computed by allocating total indirect costs over the sum of direct labor dollars plus the application of NOAA’s leave surcharge and benefits rates to direct labor. The indirect cost rates that C&C has computed for the NMSP component organizations were further assessed as being fair and equitable. A report on C&C’s effort, their assessment of the NMSP’s cost accounting system practice, and their determination respecting the most appropriate indirect cost methodology and rates can be obtained from: Harriet Sopher, NMSP 1305 East West Highway, Silver Spring, MD 20910. C&C reaffirmed that the Direct Labor Cost Base is the most appropriate indirect allocation method for the development of the FY 2004 indirect cost rates. E:\FR\FM\20JNN1.SGM 20JNN1 33980 Federal Register / Vol. 72, No. 118 / Wednesday, June 20, 2007 / Notices are provided in this notice. More information on these rates and the NMSP policy can be obtained from the address provided below. FOR FURTHER INFORMATION CONTACT: Harriet Sopher, 301–713–3125, ext. 271; (FAX: 301–713–0404; e-mail: Harriet.Sopher@noaa.gov. FY 2004 SUPPLEMENTARY INFORMATION: The NMSP component organization indirect rate mission of the NMSP with respect to (percent) Natural Resource Damage Assessment is to restore injuries to sanctuary resources National Marine Sanctuary. Program (NMSP) ...................... 125.40 caused by releases of hazardous NMSP Florida Keys National. substances or oil under the Marine Sanctuary (FKNMS) ..... 198.37 Comprehensive Environmental Response, Compensation, and Liability The FY 2004 rates identified in this Act (CERCLA) (42 U.S.C., 9601 et seq.) policy will be applied to all damage or the Oil Pollution Act of 1990 (OPA) assessment and restoration case costs (33 U.S.C., 2701 et seq.), or physical incurred between October 1, 2003 and injuries under the National Marine September 30, 2004, using the Direct Sanctuaries Act (NMSA) (16 U.S.C., Labor Cost base allocation methodology. 1431 et seq.). The NOAA NMSP consists For cases that have settled and for costs of the following component claims paid prior to the effective date of organizations: Thirteen Marine the fiscal year in question, the NMSP Sanctuaries and one National will not re-open any resolved matters Monument within NOAA’s National for the purpose of applying the rates in Ocean Service. The NMSP conducts this policy. For cases not settled and Natural Resource Damage Assessments cost claims not paid prior to the (NRDAs) as a basis for recovering effective date of the fiscal year in damages from responsible parties and question, costs will be recalculated uses the funds recovered to restore using the rates in this policy. The NMSP injured sanctuary resources. will use the FY 2004 rates for future When addressing NRDA incidents, fiscal years until year-specific rates can the costs of the damage assessment are be developed. recoverable from responsible parties Dated: June 11, 2007 who are potentially liable for an Daniel J. Basta, incident. Costs include direct and Director, National Marine Sanctuary Program. indirect costs. Direct costs are costs for activities that are clearly and readily [FR Doc. 07–3018 Filed 6–19–07; 8:45 am] attributable to a specific output. In the BILLING CODE 3510–NK–M context of the NMSP, outputs may be associated with damage assessment cases, or may be represented by other DEPARTMENT OF COMMERCE program products such as damage National Oceanic and Atmospheric assessment regulations. In contrast, Administration indirect costs reflect the costs for activities that collectively support the Notice of Indirect Cost Rates for the NMSP’s mission and operations. For National Marine Sanctuary Program for example, indirect costs include general Fiscal Year 2003 administrative support and traditional overheads. Although these costs may AGENCY: National Oceanic and not be readily traced back to a specific Atmospheric Administration (NOAA), direct activity, indirect costs may be Commerce. allocated to direct activities using an ACTION: Notice of indirect cost rates for the National Marine Sanctuary Program indirect cost distribution rate. Consistent with standard Federal for fiscal year 2003. accounting requirements, the NMSP is SUMMARY: The National Oceanic and required to account for and report the Atmospheric Administration’s full costs of its programs and activities. (NOAA’s) National Marine Sanctuary Further, the NMSP is authorized by law Program (NMSP) is announcing the to recover reasonable costs of damage establishment of new indirect cost rates assessment and restoration activities on the recovery of indirect costs for its under CERCLA, OPA, and the NMSA. component organizations involved in Within the constraints of these legal natural resource damage assessment and provisions and their regulatory restoration activities for fiscal year (FY) applications, the NMSP has the 2003. The indirect cost rates for this discretion to develop indirect cost rates fiscal year and dates of implementation for its component organizations and rwilkins on PROD1PC63 with NOTICES The NMSP’s Indirect Cost Rates and Policies The NMSP will apply the indirect cost rates for FY 2004 as recommended by C&C for each of the NMSP component organizations as provided in the following table: VerDate Aug<31>2005 18:25 Jun 19, 2007 Jkt 211001 PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 formulate policies on the recovery of indirect cost rates subject to its requirements. The NMSP’s Indirect Cost Effort In October 2002, the NMSP hired the public accounting firm Cotton & Company (C&C) to: (1) Evaluate the cost accounting system and allocation practices; (2) recommend the appropriate indirect cost allocation methodology; and, (3) determine the indirect cost rates for the organizations that comprise the NMSP. The NMSP requested an analysis of its indirect costs for fiscal year 2002. The goal was to develop the most appropriate indirect cost rate allocation methodology and rates for the NMSP component organizations. C&C has continued its assessment of the NMSP’s indirect cost rate system and structure from FY 2002 to present. C&C concluded that the cost accounting system and allocation practices of the NMSP component organizations are consistent with Federal accounting requirements. C&C also determined that the most appropriate indirect allocation method was the Direct Labor Cost Basefor all NMSP component organizations. The Direct Labor Cost Base is computed by allocating total indirect costs over the sum of direct labor dollars plus the application of NOAA’s leave surcharge and benefits rates to direct labor. The indirect cost rates that C&C has computed to the NMSP component organizations were further assessed as being fair and equitable. A report on C&C’s effort, their assessment of the NMSP’s cost accounting system and practice, and their determination respecting the most appropriate indirect cost methodology and rates can be obtained from: Harriet Sopher, NMSP 1305 East West Highway, Silver Spring, MD 20910. C&C reaffirmed that the Direct Labor Cost Base remained the most appropriate indirect allocation method for the development of the FY 2003 indirect cost rates. The NMSP’s Indirect Cost Rates and Policies The NMSP will apply the indirect cost rates for FY 2003 as recommended by C&C for each of the NMSP component organizations as provided in the following table: NMSP component organization National Marine Sanctuary Program (NMSP) ............ E:\FR\FM\20JNN1.SGM 20JNN1 FY 2003 indirect rate (percent) 187.67

Agencies

[Federal Register Volume 72, Number 118 (Wednesday, June 20, 2007)]
[Notices]
[Pages 33979-33980]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-3018]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration


Notice of Indirect Cost Rates for the National Marine Sanctuary 
Program for Fiscal Year 2004

AGENCY: National Oceanic and Atmospheric Administration (NOAA), 
Commerce.

ACTION: Notice of indirect cost rates for the National Marine Sanctuary 
Program for fiscal year 2004.

-----------------------------------------------------------------------

SUMMARY: The National Oceanic and Atmospheric Administration's (NOAA's) 
National Marine Sanctuary Program (NMSP) is announcing the 
establishment of new indirect cost rates on the recovery of indirect 
costs for its component organizations involved in natural resource 
damage assessment and restoration activities for fiscal year (FY) 2004. 
The indirect cost rates for this fiscal year and dates of 
implementation are provided in this notice. More information on these 
rates and the NMSP policy can be obtained from the address provided 
below.

FOR FURTHER INFORMATION CONTACT: Harriet Sopher, 301-713-3125, ext. 
271; (FAX: 301-713-0404; email: Harriet.Sopher@noaa.gov.

SUPPLEMENTARY INFORMATION: The mission of the NMSP with respect to 
Natural Resource Damage Assessment is to restore injuries to sanctuary 
resources caused by releases of hazardous substances or oil under the 
Comprehensive Environmental Response, Compensation, and Liability Act 
(CERCLA) (42 U.S.C., 9601 et seq.) or the Oil Pollution Act of 1990 
(OPA) (33 U.S.C., 2701 et seq.), or physical injuries under the 
National Marine Sanctuaries Act (NMSA) (16 U.S.C., 1431 et seq.). The 
NOAA NMSP consists of the following component organizations: Thirteen 
Marine Sanctuaries and one National Monument within NOAA's National 
Ocean Service. The NMSP conducts Natural Resource Damage Assessments 
(NRDAs) as a basis for recovering damages from responsible parties and 
uses the funds recovered to restore injured sanctuary resources.
    When addressing NRDA incidents, the costs of the damage assessment 
are recoverable from responsible parties who are potentially liable for 
an incident. Costs include direct and indirect costs. Direct costs are 
costs for activities that are clearly and readily attributable to a 
specific output. In the context of the NMSP, outputs may be associated 
with damage assessment cases, or may be represented by other program 
products such as damage assessment regulations. In contrast, indirect 
costs reflect the costs for activities that collectively support the 
NMSP's mission and operations. For example, indirect costs include 
general administrative support and traditional overheads. Although 
these costs may not be readily traced back to a specific direct 
activity indirect costs may be allocated to direct activities using an 
indirect cost distribution rate.
    Consistent with standard Federal accounting requirements, the NMSP 
is required to account for and report the full costs of its programs 
and activities. Further, the NMSP is authorized by law to recover 
reasonable costs of damage assessment and restoration activities under 
CERCLA, OPA, and the NMSA. Within the constraints of these legal 
provisions and their regulatory applications, the NMSP has the 
discretion to develop indirect cost rates for its component 
organizations and formulate policies on the recovery of indirect cost 
rates subject to its requirements.

The NMSP's Indirect Cost Effort

    In October 2002, the NMSP hired the public accounting firm Cotton & 
Company (C&C) to: (1) Evaluate the cost accounting system and 
allocation practices; (2) recommend the appropriate indirect cost 
allocation methodology; and, (3) determine the indirect cost rates for 
the organizations that comprise the NMSP.
    The NMSP requested an analysis of its indirect costs for fiscal 
year 2002. The goal was to develop the most appropriate indirect cost 
rate allocation methodology and rates for the NMSP component 
organizations. C&C has continued its assessment of the NMSP's indirect 
cost rate system and structure from FY2002 to present.
    C&C concluded that the cost accounting system and allocation 
practices of the NMSP component organizations are consistent with 
Federal accounting requirements. C&C also determined that the most 
appropriate indirect allocation method was the Direct Labor Cost Base 
for all NMSP component organizations. The Direct Labor Cost Base is 
computed by allocating total indirect costs over the sum of direct 
labor dollars plus the application of NOAA's leave surcharge and 
benefits rates to direct labor. The indirect cost rates that C&C has 
computed for the NMSP component organizations were further assessed as 
being fair and equitable. A report on C&C's effort, their assessment of 
the NMSP's cost accounting system practice, and their determination 
respecting the most appropriate indirect cost methodology and rates can 
be obtained from: Harriet Sopher, NMSP 1305 East West Highway, Silver 
Spring, MD 20910.
    C&C reaffirmed that the Direct Labor Cost Base is the most 
appropriate indirect allocation method for the development of the FY 
2004 indirect cost rates.

[[Page 33980]]

The NMSP's Indirect Cost Rates and Policies

    The NMSP will apply the indirect cost rates for FY 2004 as 
recommended by C&C for each of the NMSP component organizations as 
provided in the following table:

------------------------------------------------------------------------
                                                               FY 2004
                                                               indirect
                NMSP component organization                      rate
                                                              (percent)
------------------------------------------------------------------------
National Marine Sanctuary..................................
Program (NMSP).............................................       125.40
NMSP Florida Keys National.................................
Marine Sanctuary (FKNMS)...................................       198.37
------------------------------------------------------------------------

    The FY 2004 rates identified in this policy will be applied to all 
damage assessment and restoration case costs incurred between October 
1, 2003 and September 30, 2004, using the Direct Labor Cost base 
allocation methodology. For cases that have settled and for costs 
claims paid prior to the effective date of the fiscal year in question, 
the NMSP will not re-open any resolved matters for the purpose of 
applying the rates in this policy. For cases not settled and cost 
claims not paid prior to the effective date of the fiscal year in 
question, costs will be recalculated using the rates in this policy. 
The NMSP will use the FY 2004 rates for future fiscal years until year-
specific rates can be developed.

    Dated: June 11, 2007
Daniel J. Basta,
Director, National Marine Sanctuary Program.
[FR Doc. 07-3018 Filed 6-19-07; 8:45 am]
BILLING CODE 3510-NK-M

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.