How can applicants that do not have a current federally approved indirect cost rate with a cognizant federal agency obtain an approved indirect cost rate?
For the purposes of applications, applicants without a negotiated indirect cost rate are encouraged to use their accountant (or CPA) to calculate an indirect cost rate using information in the IRS Form 990, audited financial statements, actual cost data or a cost policy statement that those applicants are encouraged to prepare (but NOT submit to ED) during the application process. Applicants should use this proposed rate in their application materials and indicate which of the above methods was used to calculate the rate. Guidance for creating a cost policy statement can be obtained by sending an e-mail to Katrina.Mcdonald@ed.gov. If selected for funding, such applicants then will be required to establish a current ICR with their cognizant agency within 90 days after the grant is issued by ED.
Related Questions
- If an organization does not have a federally approved indirect cost rate; can the organization request indirect costs in the budget submission? If so, what is the limit?
- How can applicants that do not have a current federally approved indirect cost rate with a cognizant federal agency obtain an approved indirect cost rate?
- If an agency has a federally negotiated indirect cost rate, can that serve as the operating cost allocation justification?
