Changes to Indirect Cost Rate Regulations and FAQs

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Dear Colleagues,

Changes to indirect cost rate regulations and FAQs

As you are aware, there were several changes to indirect cost rate regulations in the Uniform Guidance, effective December 26, 2014. These changes created greater flexibility for grantees to reclaim indirect costs under their federal awards and require federal agencies to accept federally negotiated indirect cost rates in most cases.  This is our first issuance of Indirect Cost FAQs which will address many of the questions we have received.  This list of FAQs will be updated at least annually but possibly more often based on additional questions which may arise. 

To maintain a record of each recipient's method of claiming indirect costs, we established a feature in eGrants for recipients to record the method they will use to claim indirect costs on federal grants when appropriate.  Recipients must record the rates they intend to use under CNCS grant programs where indirect cost claims are permissible.  Step by step instructions on how to enter indirect cost rate information into your eGrants account may be downloaded on our website, here: eGrants Indirect Cost Rate (IDCR) User Instructions.  Any questions regarding the entry of indirect cost rates into eGrants can be directed to

Recording Indirect Cost Rate Options

Applicants must enter their indirect cost rate information in eGrants under the Organization tab.  A link to the instructions can be found above. If an applicant is using a negotiated indirect cost rate, the rate agreement must be provided with the application. With the exception of those using the AmeriCorps 5/10% option that do not have a federally negotiated rate, all applicants claiming indirect costs on CNCS awards must enter their indirect cost rate information into eGrants under the Indirect Cost Rate section under the Organization tab. If an organization does not have or does not intend to claim indirect costs on CNCS awards they must respond “no” when asked if they have an indirect cost rate to record.

In Service,

Corporation for National and Community Service Grant Offices
Washington, DC and Philadelphia, Pennsylvania