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[78 FR 78608, Dec. 26, 2013]
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2 CFR 200.414 Indirect (F&A) costs.
(e) Requirements for development and submission of indirect (F&A) costs rate proposals and cost allocation plans are contained Appendices III-VII and Appendix IX as follows:
(1) Appendix III to Part 200—Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Institutions of Higher Education (IHEs);
(2) Appendix IV to Part 200—Indirect (F&A) Costs Identification and Assignment, and Rate Determination for Nonprofit Organizations;
(3) Appendix V to Part 200—State/Local Government and Indian Tribe-Wide Central Service Cost Allocation Plans;
(4) Appendix VI to Part 200—Public Assistance Cost Allocation Plans ;
(5) Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposals; and
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(f) In addition to the procedures outlined in the appendices in paragraph (e) of this section, any non-Federal entity that has never received a negotiated indirect cost rate, except for those non-Federal entities described in Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposals, paragraph D.1.b, may elect to charge a de minimis rate of 10% of modified total direct costs (MTDC) which may be used indefinitely. As described in §200.403 Factors affecting allowability of costs, costs must be consistently charged as either indirect or direct costs, but may not be double charged or inconsistently charged as both. If chosen, this methodology once elected must be used consistently for all Federal awards until such time as a non-Federal entity chooses to negotiate for a rate, which the non-Federal entity may apply to do at any time.
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Typically, the NFE informs the Federal awarding agency of its eligibility and intent to charge the de minimis rate in the application proposal. There is no requirement for the NFE to provide documentation showing that its indirect costs are at least 10-percent of its MTDC, although they are required to maintain appropriate documentation of all allowable costs charged to the award per 2 CFR 200.403 Factors affecting allowability of costs.
Are State fish and wildlife agencies eligible to charge the 10% de minimis rate for indirect costs?
Yes. As long as the State fish and wildlife agency has never had an indirect cost rate approved by its cognizant Federal agency and it meets the requirements established under Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposals.
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What entities are not allowed to charge the 10% de minimis rate for indirect costs?
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Non-Federal entities that have previously had an approved indirect cost rate are not eligible to use the 10% de minimis rate. Additionally, 2 CFR 200 Appendix VII (D) outlines two basic groups of entities that are not allowed to charge the 10% de minimis rate for indirect:
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Do FEMA funds count towards the $35 million annual Federal funding criteria for using the 10% de minimis rate?
Yes. FEMA funds are considered Federal funds.
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Typically the budget office would have record of the State fish and wildlife agencies approved indirect cost rate. If not, the State fish and wildlife agency could consult with the WSFR Regional Office. Additionally, the Interior Business Center would also be able to inform the State fish and wildlife agency if they have ever had an approved indirect cost rate.
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Towards which types of indirect base can you apply the 10% de minimis
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rate?
2 CFR 200.414(f) states that an eligible non-Federal entity who elects to charge the 10% de minimis may only apply the rate to Modified Total Direct Costs (MTDC). The MTDC as a base removes "distorting items" (e.g. capital expenditures, contracts, and subgrants). Non-Federal entities are allowed to charge the 10% de minimis to the first $25,000 of its subgrants and contracts.
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