3. What figure is the Indirect Cost Rate applied against?

Indirect Cost can be applied against all line items above the Indirect Cost line item on the budget page. It is not applied against Indirect Cost itself nor against capital outlay. E.g., if the total of all line items above the Indirect Cost line item equals $1,000 and the LEA’s Indirect Cost Rate (ICR) is 6.25%, the LEA can apply 6.25% against that $1,000 of anticipated expenditures. If final expenditures for line items located above Indirect Cost do not reach $1,000, the Indirect Cost line item must be reduced in direct proportion. Care must be taken not to exceed programmatic limits as well.

Indirect cost plus all other line items cannot exceed an allocation/award amount.