NIFA Process for Establishment of Indirect Cost Rates
PRIOR to submission of application:
Negotiated Rates. The applicant should use the current negotiated indirect cost rate established (i.e., approved) by its cognizant Federal agency. If the applicant does not have a current negotiated rate, the applicant should request a rate from the Federal agency from which the applicant receives the most funding.
Applicants may request indirect costs using the lesser of: (a) the negotiated rate; or (b) the maximum statutory rate stated in the Request for Application, if any. The applicant should identify the percentage rate and base (i.e., the direct cost budget categories to which the applicant applies the rate) in the space allotted for item H of the budget sheet.
Applicant Calculated Rates (Not Negotiated). If the applicant does not have, or cannot obtain, a negotiated rate, the applicant must calculate an indirect cost rate in order to request indirect costs. The applicant should calculate an indirect cost rate based on actual costs for the entire organization from the most recently completed accounting year. If no prior cost history exists, the applicant should use budgeted costs for the entire organization. The applicant should follow the example(s) found at:
Once completed, the applicant should identify the calculated percentage rate in the space allotted for item H of the budget sheet. The applicant should also identify the direct cost budget categories to which it applies the rate (i.e., the base) in the space allotted for item H of the budget sheet. Applicants may request indirect costs using the lesser of: (a) the calculated rate; or (b) the maximum statutory rate stated in the Request for Application, if any. If selected for funding, NIFA will require the applicant to provide its indirect cost calculation (i.e., the Indirect Cost Proposal - ICP) to support requested indirect costs. The applicant should NOT submit its ICP as part of its award application. However, during the application process, the applicant may submit general questions to IndirectCostInquiries@nifa.usda.gov.
Waived Indirect Costs. An applicant may elect not to request recovery of indirect costs. If so, the applicant should write “None Requested” in this space.
IF application is selected for award:
NIFA will request the grantee’s ICP and begin the negotiation process in order to establish a negotiated indirect cost rate. The grantee should submit a complete ICP package to RecipientsICPs@nifa.usda.gov. Note that NIFA may issue the award, but withhold funds budgeted for indirect costs pending completion of the indirect cost rate negotiation process. Upon completion of the negotiation process, NIFA will notify the grantee if a modification to the grant budget is necessary.
|Questions? Comments?||Last Updated: 05/08/2012|