This FAQ addresses the question of whether employers can pay an employee from both the indirect rate and directly from the funding source. Because of the complexity of this issue, CAAs may find it useful to discuss its position with its independent auditor–and possibly fiscal staff at the government funding source(s) involved, if their fiscal monitoring is particularly thorough–to be sure that they are in agreement.

Finishing Strong with Finances
CAAs received a historic influx of restricted funding in the wake of the COVID-19 pandemic, presenting unique challenges in addition to exciting opportunities. Many of these challenges, from managing indirect cost rate rates and cost allocation plans to revisiting budgets...