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?
The established indirect cost rate must be applied to the lead organization’s direct costs (staff, travel, materials, etc.) in accordance with that organization’s federally approved indirect cost rate agreement. The partners/sub-grantees charge their own established indirect cost rates to direct costs those organizations incur under the subgrants. The lead organization may not charge indirect costs on direct or indirect costs the subgrantees incur. However, the lead organization may charge indirect costs on direct costs it incurs for subgrant administration. In cases where they use “Modified Total Direct Costs” as their base, recipients are allowed to apply their indirect cost rate to their “direct costs” minus any distorting factors (i.e., equipment purchases and the portion of subawards or subgrants in excess of $25,000). What this means is that the EPA recipient can only apply their indirect cost rate to their actual direct costs and to the first $25,000 of each subaward/sub grant t
Related Questions
- If an applicant does not have an Indirect Cost Rate Agreement with the government, then what costs cannot be included in their proposed budget?
- If a commercial organizations provisional indirect cost rate has recently expired, what rate should be used for funding a new NIH award?
- Does an applicant have to have an Indirect Cost Rate Agreement in place when they apply for funds from this grant program?
