What is the process for working with a grant applicant without an indirect cost rate established?
The process is as follows: 1. Applicant must complete form SF424A with an estimate of projected indirect costs (following examples provided at http://rates.psc.gov/fms/dca/np1.html). 2. Applicant must explain in their budget narrative that the organization’s indirect cost rate is currently being established. 3. At award, the recipient will have access to a provisional amount of unrestricted funds for indirect costs (per terms of the cooperative agreement). The provisional amount of indirect costs will be calculated based on: a. One-half of the amount of indirect costs requested by the applicant, up to a maximum of 10 percent of direct salaries and wages (exclusive of fringe benefits). 4. Once the indirect cost rate is established (which could take 3 to 6 months from award date), the allowable amount above the provisional amount will become unrestricted and available for use.
Related Questions
- When the application is a consortium of organizations, what indirect cost rate can be used for the applicant (i.e., the lead organization) and for the partners/sub-grantees?
- If an applicant does not have an Indirect Cost Rate Agreement with the government, then what costs cannot be included in their proposed budget?
- Does an applicant have to have an Indirect Cost Rate Agreement in place when they apply for funds from this grant program?
