Common use of Indirect Cost Clause in Contracts

Indirect Cost. Subrecipients may charge indirect costs in accordance with 2 CFR §§200.414- 416 for certain federal and state grants upon approval by the state. i. Subrecipients may request indirect costs with their grant application so the indirect costs may be an approved expense with PGA execution. ii. Subrecipients may elect to use a rate derived from a current cost allocation plan documented in the required Indirect Cost Certificate submitted to the state (along with any other supporting documents required by the state) or may elect to use a de minimis rate up to 10% Modified Total Direct Cost (MTDC) as described in 2 CFR §200.414 and TxGMS. iii. Indirect Cost Rate Certificates must be received from the subrecipient annually and no later than the expiration date of the indirect cost rate certificate on file at PTN. If a subrecipient with a history of using a negotiated rate elects to use the de minimis rate, they must notify PTN by email by the expiration date of the certificate on file at PTN. iv. A subrecipient with a current negotiated indirect cost rate, may apply for an extension of the rate for a period of up to four years. The extension must be approved by PTN. After the four (4) year extension, the subrecipient must re-apply to negotiate a rate.