How do applicants calculate the indirect cost amount?
Indirect costs may be calculated by multiplying the approved indirect cost rate by the base established in an LEA’s indirect cost agreement. The most common base is modified total direct costs. Items that are excluded from total direct costs (to determine modified total direct costs) include: Costs for contractual services that exceed $25,000 per contract, regardless of the period covered by the contract. Costs for “Equipment” expenditures (items that have a per unit cost of more than $5,000).
Related Questions
- How do I know what indirect cost rate (also known as the Facilities and Administrative [ FandA ] rate) to use to calculate for the cost shared budget?
- What typical types of distribution bases are available to calculate the indirect cost rate?
- How do applicants obtain a negotiated, unrestricted indirect cost rate?
