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?
Yes. If a prospective recipient does not have a currently effective indirect cost rate because it has never established one, the organization must contact the DHHS Division of Cost Allocation (DCA) or other cognizant agency to determine the need for an indirect cost rate or special rate and required documentation. If it is determined by the DCA that it is not feasible for the organization to develop a rate, the organization must have an accounting system that identifies and segregates costs and assigns them commensurate with the benefits provided to each grant-supported project and the entity’s other activities. If the organization intends to establish an indirect cost rate, the grants management officer may include in the award an amount equaling one-half of the amount of indirect costs requested by the applicant up to a maximum of 10% of direct salaries and wages (exclusive of fringe benefits). If the recipient fails to provide a timely proposal, indirect costs paid in anticipation o
Related Questions
- Can an organization submit a grant proposal without a negotiated indirect cost rate, and if so, what indirect cost rate should be used in the grant proposal budget?
- Must an organization have a Federally approved indirect cost rate to include indirect costs (F&A Costs) in the Total Costs requested in the application?
- If an applicant does not have an Indirect Cost Rate Agreement with the government, then what costs cannot be included in their proposed budget?
