Grants Management Indirect Cost Rates
Indirect costs: “costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved” (§200.56).
Direct costs: “costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (F&A) costs” (§200.413).
Indirect Cost Training:
Indirect Cost training materials and webinars can be accessed through the public folder, GME User Resources/Training-Indirect Cost, in the Grants Management Resource Library on the Grants Management Enterprise (GME).
Indirect Cost Rates for FY19 and forward can be access through Grants Management Enterprise (GME). Reference the Public Access Guide, search for the entity, click Indirect Cost on the Entity Information page, and select the fiscal year from the drop down. Records prior to FY18 may be requested through a records request.
Indirect Cost Rates Frequently Asked Questions
For additional guidance, please refer to:
- General Fiscal Processes FAQs for further information on fiscal processes
- Health and Nutrition for further information on Health and Nutrition
- Maintenance of Effort (MOE) for further information on Maintenance of Effort
- Frequently Asked Questions for further instruction on grant processes
- Training Resources for technical instructions on using the GME system
Per 2 CFR §200.56, Indirect costs are:
- Incurred for a common or joint purpose, benefiting more than one cost objective
- Not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved
For more information on Indirect Cost, click here.
Per 2 CFR §200.413, Direct costs are "those costs that can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect (Facilities and Administration F&A) costs."
2 CFR §200.31 and OMB circular A-87 classifies certain items of cost as disallowed, which means that the federal funds cannot be used for these purposes.These costs are directly attributable to governance. However, for rate computational purposes, these disallowed costs should be included in the base for allocation, along with direct costs if they generated or benefited from allowable indirect cost. Examples include: bad debts, contingencies, entertainment, fines and penalties, governance, and contributions and donations to outside organizations.
34 CFR 76.567 describes expenditures that are "extraordinary or distorting and to be excluded" as:
- Capital outlay
- Debt service
- Judgments against the school district
- Certain transfers and internal-service fund expenditures
- General management costs determined under 34 CFR §76.565
- Fixed costs determined under 34 CFR §76.566
- Subgrants
- Contingencies
- Election expenses
For grants made under federal programs with supplement and in no case supplant requirements, the restricted rate applies. The funds through these grants are intended to supplement, but in no way replace, local funds. Typically, restricted grants include only indirect costs consisting of general management costs and fixed charges. The unrestricted rates apply to grants not subject to the supplement but not supplant legislative restriction.
In order to negotiate an Indirect Cost Rate, log into the Grants Management Enterprise (GME) via ADEConnect (it is the Grants Management link under the parent organization). Once in GME and have selected the organization, on the Entity Information page, select the Indirect Cost link and complete the required section (Data Sheet). For additional guidance on negotiating an Indirect Cost Rate, please refer to the Indirect Cost PowerPoint.
For more information on Indirect Cost, click here.
A copy of the current Federally Negotiated Indirect Cost Rate Agreement must be submitted to Grants Management using the Grants Management's General Request template in ADE Help Desk.
- Unrestricted: 25%
- Restricted: 12%
No, Indirect Cost is only allowed on federal grants.
All costs are to be classified as Direct, Indirect, Other, Capital, Debt, or Food. Please see District or Charter Guide to use as guidance on how costs may be classified.
To calculate Indirect Cost Recovery, take the total direct expenditures minus excluded costs and multiply by the Indirect Cost Rate.
