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Typically, the NFE informs the Federal awarding agency in the application proposal of its eligibility and intent to charge the de minimis rate. Barring any statutory or regulatory restrictions, the Federal awarding agency must approve the use of the de minimis rate.
Does the non-Federal entity have to submit documentation supporting that their indirect costs are at least 10-percent of its
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MTDC to be charged to the award?
No. 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.
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