Indirect Costs for Federally Funded Payable Grants. Indirect costs (Administrative overhead) are those that cannot be directly assigned to a particular grant activity but are necessary to the operation of the organization and the performance of the grant project. Indirect costs include operating and maintaining facilities, accounting services, and administrative salaries that cannot be recovered in other budget categories. In accordance with the Federal Uniform Grant Guidance 2017 (2 CFR
1. Use their federally approved Indirect Cost Rate. Federal approval documentation and a supporting budget spreadsheet must be included as supplemental information; OR
2. Use De Minimis rate, an amount up to ten percent (10%) of the Grantee’s Modified Total Direct Costs (MTDC). The MTDC base cannot include any distorting costs such as equipment, rent, capital expenditures, or any sub-awards, contracts, or consultants beyond the first $25,000. Per 2 CFR §200.68: Modified Total Direct Cost (MTDC) all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and subawards and subcontracts up to the first $25,000 of each subaward or subcontract (regardless of the period of performance of the subawards and subcontracts under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward and subcontract in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.
Indirect Costs for Federally Funded Payable Grants. Indirect costs (administrative overhead) are those that cannot be directly assigned to a particular grant activity but are necessary to the operation of the organization and the performance of the grant project. Indirect costs include operating and maintaining facilities, accounting services, and administrative salaries that cannot be recovered in other budget categories. In accordance with the Federal Uniform Grant Guidance 2017 (2 CFR 200) Grantees have two options for requesting indirect costs:
1. Use their federally approved Indirect Cost Rate. Federal approval documentation and a supporting budget spreadsheet must be included as supplemental information. Existing negotiated indirect cost rates will remain in place until they expire. The effective date of changes to indirect cost rates must be based upon the date that a newly re-negotiated rate goes into effect for the specific fiscal year. The Grantee shall notify CDFW with any changes to the negotiated indirect cost rate. OR
2. Use De Minimis rate, an amount up to ten percent (10%) of the Grantee’s Modified Total Direct Costs (MTDC). The MTDC base cannot include any distorting costs such as equipment, rent, capital expenditures, or any sub-awards, contracts, or consultants beyond the first $25,000.
