[References: FAR 31.201-4, 31.203(f); CAS 401, 402, 403, & 405;

23 U.S.C. 112(D) & 23 CFR 172.7(b)]

A. Generally

An indirect cost rate schedule is the primary document used to show the calculation of indirect cost rates.

The schedule must be prepared based on actual costs recorded in the engineering consultant’s general

ledger (after adjusting entries have been posted to the accounts), as reconciled to the consultant’s cost

accounting system. Since an indirect cost rate generally is computed as the ratio of allowable indirect

costs to total allocable direct labor costs, the indirect cost rate schedule must identify direct labor cost as a

separate line item.

AASHTO Uniform Audit and Accounting Guide - 2012 Edition