Getting the Most from Indirect Costs - Parts I and II
Applying for or managing indirect costs was never simple, and the uniform guidance has introduced new options. Nonfederal entities that never had an indirect cost rate before can request a "de minimis" or 10 percent flat rate for indirect costs. For nonfederal entities with current indirect cost rates, the way you calculate indirect costs makes all the difference in your ability to recover overhead and administrative costs. But there's more. There is an extension period under certain circumstances, there are cost allocation plans, and there are new requirements for federal agencies and pass-through entities, too. Getting indirect costs right means navigating complex provisions and avoiding potential audit findings. Here's what you need in order to understand the options and the new requirements.
Learning Objectives Part I:
1. Gain awareness of direct and indirect costs.
2. Recognize changes to indirect costs.
3. Distinguish between different indirect cost rates.
4. Review considerations to obtain a rate.
Learning Objectives Part II:
1. Revisit types of indirect rates and formulas.
2. Review how to apply an indirect rate in grant budgets, including waiving rates, using rates as cost sharing, and more.
3. Gain awareness how different formulas affect the outcome of an indirect rate (practice with calculations).
4. Identify key requirements for cost allocation plans.
GPC Competencies Addressed:
How to craft, construct, and submit an effective grant application
Strategies for effective program and project design and development
Nationally recognized standards of ethical practice by grant developers
Post-award grant management practices sufficient to inform effective grant design and development
Practices and services that raise the level of professionalism of grant developers
Karen Norris is nationally recognized as a consultant and Subject Matter Expert for kanoco - a Karen Norris Company in Gaithersburg, MD. She has experience in grants for more than 20 years, previously for educational institutions in Maryland, as managing editor at a national publishing house, and currently as a consultant. Norris served on Boards of Directors of professional associations, she presents at conferences, served as federal reviewer, and provided testimony about grants to legislators.