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De Minimis Rate: The updated Uniform Guidance has increased the indirect cost de minimis Because of this, pass-through entities can approve an indirect cost rate of up to 15% (previously 10%) for subrecipient organizations that do not have a federally negotiated indirect cost rate, allowing subrecipients (such as nonprofits and small businesses ...
15% de minimis rate: The new version of the OMB Uniform Guidance raises the guaranteed de minimis rate for indirect costs from 10% to 15% of modified total direct costs.
15% de minimis rate: The new version of the OMB Uniform Guidance raises the guaranteed de minimis rate for indirect costs from 10% to 15% of modified total direct costs.
What is the De Minimis Indirect Cost Rate? The de minimis indirect cost rate (de minimis ICR) is 10% of an organization’s Modified Total Direct Costs (MTDC). Effective October 1, 2024, the de minimis ICR will increase to 15%.
Recipients and subrecipients that do not have a current Federal negotiated indirect cost rate (including provisional rate) may elect to charge a de minimis rate of up to 15 percent of modified total direct costs (MTDC).
Will 15% De Minimis Rate Work Well for Your CAA? • Identify all agency-wide admin costs • Calculate MTDC Base • Would 15% de minimis rate allow your CAA to fully recover agency-wide admin costs? • Is 15% more than your actual agency-wide admin costs? • If so, test adding facilities or other shared costs into “indirect pool”
The revised Uniform Guidance clarifies that the federal government and pass-through entities may not compel recipients and subrecipients to use an indirect cost rate lower than the 15% de minimis rate or elected de minimis rate, unless required by a federal statute or regulation.
The de minimis rate is the percentage of the Modified Total Direct Cost (MTDC) that can be used by non-governmental entities who do not have a negotiated Indirect Cost Agreement. Effective October 1, 2024, the de minimis rate increased from 10% to 15%.
Explore the recent revisions to OMB guidance for grants and agreements and their effect on state & local governments and not-for-profits.
the new de minimis indirect cost rate of 1 5% for federal grants procured after October 1, 2024 and direct all recovered revenue to the General Fund. Administrative Procedures referencing the federal indirect de minimis rate will be revised to reflect the new 15% rate and communicated to all departmental leadership. JKL/anc