Improving Indirect Cost Rate Use in Island Jurisdictions
Island Areas Workgroup, Health Financing Subgroup
October 17, 2024
Indirect cost rates (ICRs) are a critical component of effective financial management for public health agencies. ICRs let recipients allocate shared administrative costs across all grant program areas, allowing them to save on costs and support salaries for cross-cutting staff. Establishing and maintaining ICRs poses substantial advantages to public health agencies but also requires a significant time investment, strong accounting practices, and a robust grants management infrastructure.
The eight U.S. Island jurisdiction health agencies face unique grants management challenges inherent to their small populations and remote geography. These include limited staffing, smaller grant volumes, and smaller local treasuries. These factors contribute to territorial and freely associated state government agencies’ historical challenges in efficiently managing and spending down federal funds.
This report outlines how Island jurisdictions can use existing policies to improve their ICR utilization and maximize federal funding, as well as further steps agencies can take to strengthen their financial management systems.
Implementing Indirect Cost Rates in Island Jurisdictions: Best Practices and Resources
Health agencies are essential in driving public health initiatives and enhancing community health. To have the largest impact, they must manage grants from HHS and other funders efficiently.
By utilizing ICRs, agency leaders and grants staff can bolster infrastructure around grants management and other cross-cutting operations. This guide outlines best practices, answers common questions, and shares helpful resources for indirect cost recovery in governmental public health.
ASTHO’s Island Areas Workgroup seeks to advance health equity for U.S. territories and freely associated states through jurisdiction and federal departmental coordination and administrative change. It brings together leaders from island jurisdictions, federal agencies, and partner organizations to find solutions that can optimize the procedures, organizational policies, and programmatic structures surrounding island health programming. ASTHO staff support subgroup activity and host quarterly meetings.