Complete schedule 6 before starting this schedule as indirect labor expenditure data originate there.

This schedule is located below schedule 1 on the worksheet "Sch 1 and 2" in the Excel workbook "02bud_division's 2-digit code.xls " (e.g.: 02bud_10.xls for CGD).

The division indirect cost budget should contain the division's indirect cost programs. These programs are generally considered administrative support for the division.

 See: UCAR's Indirect Cost Pool Guidelines for definitions and examples of division indirect costs.

In general, each division will have an account number for each of the following:

• General Administration. This account captures costs related to the Division Director's Office, excluding direct cost reserves and other direct programs controlled by the Director's Office e.g., Visitor Program. (Long distance telephone expenses not charged to direct programs should be included in this account.)
• Computer Network or System. If the division does NOT have a computing service center (CSC), indirect costs associated with the division's computer infrastructure are accumulated here.
• Bid and Proposal costs. Reference Bid and Proposal Time in the Indirect Cost Pool Guidelines.

  An account number may be added for any other indirect cost program separate from the above categories. Reminder: Copy down yellow formula cells if a row is added.

  Costs associated with direct programs but under the control of the Division Director's Office must be included in the direct program Schedule 1 with a section labeled "Director's Office - Direct Programs." An example is Visitors Programs, which are a direct cost and budgeted in the Director's Office accounts. In this case, a program account number should be located in the direct program area of Schedule 1under the Director's Office section.
  
  When estimating costs, reference your prior year actual expenditures to form a baseline. From this baseline adjust by inflation factors (ref the Consumer Price Index at http://www.bls.gov/cpi/home.htm) for nonsalary items. Then, adjust this inflated amount up or down by anticipated increases or decreases in estimated expenditures. Additional adjustments may be needed due to target changes from one year to the next. Although we budget at expense class levels, it is important to know the appropriate expense categories for budgeting, reference these links for additional procurement information: http://www.fin.ucar.edu/contracts/contracts/guideline/cp_fguide.html for the procurement guide http://www.fin.ucar.edu/contracts/contracts/cp_fobject.html for a list of expense codes.

• Barring the insertion of columns into the schedule, the twenty column labels in schedule 2 match the columns as described in schedule 1 with the following four exceptions:

  Column P:	In schedule 2, planned equipment expenditures are unallowable.  See: UCAR's Indirect Cost Pool Guidelines for clarification.
  Column R:	Not applicable. As indirect costs are exempt from overhead, MTDC is not calculated.
  Column S:	Not applicable. Indirect costs are exempt from overhead.
  Column T:	Program Total. This is the total for the given account and without overhead applied equals the program subtotal (column Q).

   Having no overhead or MTDC, there is no schedule A (MTDC exclusions) associated with schedule 2.

   For printing, "Sch 1 and 2" is configured to use legal sized paper.