FIN 07-20

1. GENERAL

After thoroughly researching the specifics of a given project and having determined the reimbursable functions, multipurpose allocation percentages and applicable interest rates, set up a spreadsheet similar to example on the following pages of this attachment.

A. Enter total construction costs for the year by cost authority/feature. Include all prior years for advance planning and preconstruction costs in the first year of construction.

B. Determine net disbursements by entering the Federal disbursements for the year and the annual change in contract holdbacks. Include all prior years' disbursements for advance planning and preconstruction costs in the first year of construction. Disbursements are determined from the following:

(1) For years prior to FY 1989, use Line 14 of SF-133, if available.

(2) For FY 1989, subtract FAST GL 13110 11/30/88, balance from FAST GS 13110 9/30/88, balance and add the net of the 9/30/89, balances in FFS SGL's 1015, 1016, and 1017.

(3) For years after FY 1989, add the net balances of SGL's 1015, 1016, and 1017.

(4) Determine the Conversion Percentage by dividing total net disbursements by total costs for the current year.

C. Enter the total Miscellaneous Revenues for the year, if applicable, and allocate to each reimbursable function or allocate by other means if appropriate.

D. Determine the Federal Investment Basis and calculate IDC for each reimbursable function.

(1) For each reimbursable multipurpose function:

(a) Multiply total multipurpose costs by the reimbursable function's multipurpose allocation percentage.

(b) Determine the cumulative results in (a).

(c) Multiply the result in (a) by the current year's conversion percentage.

(d) Subtract the current year's Miscellaneous Revenues applicable to this reimbursable function from the result in (c) to arrive at the current year net disbursements.

(e) Determine the cumulative results of (d).

(f) Determine the Federal investment basis by adding one-half of the result in (d) to the prior year cumulative results in (e) plus the prior year cumulative IDC in (h) below (if compound IDC applies).

(g) Multiply the basis in (f) by the applicable interest rate for this reimbursable function.

(h) Determine the cumulative results of (g).

(2) For single purpose reimbursable costs proceed as in (1) above with a 100 percent reimbursable allocation percentage.

2. TRANSFERS

A. For transfers within construction work in progress, but between different purposes, a column will have to be added to that year's IDC calculation to allow for calculating the prorata transfer of net disbursements and IDC.

B. When transfers to plant occur, a column(s) will also have to be added to that year's IDC calculation to allow for calculating the prorata amount of IDC to be transferred and for calculating the prorata amount of net disbursements to be removed.

(1) If the transfer occurred this year but was effective as of the end of the prior year, deduct the prorata share of disbursements and IDC before calculating the current year's IDC.

(2) If the transfer is effective as of the end of the current year, determine the prorata amounts after calculating IDC for the current year.

(3) If the transfer is effective in the middle of the year, a second column will have to be added to enable the calculation of IDC both before and after the transfer for the current year.

3. NON-FEDERAL CONTRIBUTIONS

The method of handling them will be dictated by the repayment contract and/or authorizing legislation. The IDC spreadsheet should be adapted to fit the specific needs of the project. The governing criteria for the adaptation is that IDC should be calculated and accrued only on the reimbursable portion of Federal net disbursements.

A. There may be situations in which the non-Federal contributor is participating in the entire project.

B. If the non-Federal contributor is participating in only one or two of the project purposes, their contributions each year must be applied only to the purposes in which they are participating.