Page History
...
Overview
...
2 CFR 200 allows any non-Federal entity entity (NFE) that has never received a negotiated indirect cost rate to charge a de minimis rate of 10% of modified total direct costs (MTDC), which the NFE may use indefinitely as a Federally-negotiated rate. This option for NFE recovery of indirect costs incurred during work under Federal awards removes administrative barriers smaller organizations previously faced receiving and implementing Federal financial assistance. With the introduction of the de minimis rate, these organizations can now charge allowable costs which indirectly support the direct work on the Federally-funded project(s); something that was previously difficult because of the large administrative burden associated with the negotiation process.
10% De Minimis Indirect Cost Rate
...
Yes. Prime recipients who subaward some or all of the Federal award to eligible subrecipients must approve either the 10% de minimis rate, or negotiate an indirect rate with the subrecipient, in lieu of a Federally-negotiated indirect cost rate. see 2 CFR 200.331(a)(4).
Do FEMA funds count towards the $35 million annual Federal funding criteria for using the 10% de minimis rate?
...
Towards which types of indirect base can you apply the 10% de minimis rate?
2 CFR 200.414(f) states that an eligible non-Federal entity who elects to charge the 10% de minimis rate may only apply the rate to their 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 subawards.
...
