Page 115 - HCSD SOPandIC Manual

2. This capital outlay amount is subtracted from the current funding year grant amount to get the net
available for both direct and indirect costs.

3. Divide the amount available for both direct and indirect costs by 100% of the direct cost plus the
indirect restricted rate (percent) to yield the direct costs amount.

4. Subtract the direct cost from the amount available for both the direct and indirect costs to determine
the indirect payment to the district.

Example: Indirect restricted rate – 4.25%
Fixed Grant Amount $1,000,000.00
Less: Capital Outlay 20,000.00
Net available for Direct and Indirect Costs $980,000.00

Calculate the direct cost:
Divide the direct cost and indirect cost amount by 100% plus 4.25% - $980,000 /1.0425 = 940,048
(rounded). NOTE: You must change each percent to a decimal by dividing each percent by 100; 4.25/100
= .0425 and 100/100 = 1. Adding the decimals = 1.0425.

Subtract the direct cost from the net available for direct and indirect costs to obtain the maximum indirect
cost payment to the district. $980,000.00 – 940,048.00 = $39,952

PROCEDURES FOR OVERPAYMENT INDIRECT COSTS – I2

If it is determined that an excess amount of indirect cost, in the aggregate, has been paid to Hinds County
School District by the MDE Department of Federal Programs under its federal awards due to a cost
accounting error or oversight, the following procedure will be followed:

1. DoFP with the assistance of the Business Manager will determine the amount of the overpayment.

2. The overpayment amount will be credited or refunded, as deemed appropriate by MDE.

3. The excess amount will be subject to applicable interest.

INTERNAL CONTROLS – D1 through D3
Policy DIAB
The HCSD establishes and maintains a system of effective internal controls over Federal Awards that
provide reasonable assurance that the district is managing Federal awards in compliance with Federal
statutes, regulations, and the terms and conditions of Federal awards. These internal controls should be in
accordance with guidance stated in the “Standards of Internal Control in the Federal Government” (GAO
Green Book) or the “Internal Controls Integrated Framework” (Tredway Commission).

The HCSD Standard Operating Procedures Manual Section I – Internal Controls details the district’s
policies and procedures for Internal Controls.

Checks and Balances – D1
The district has checks and balances to ensure segregation of duties, matching of invoices and other
documentation to purchase orders, and other various forms and procedures to ensure transactions are only
performed by authorized personnel. The district has various levels of review for purchases, fixed assets,
grant management, and appropriate documentation. Additionally, the district’s information, data and

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