Understanding Indirect Costs

Patrons III

For many organizations the indirect cost process is a confusing, unclear endeavor. Understanding indirect cost is an important key in the budgeting and management processes of the grant-funded entity. Unfamiliarity with the rules surrounding indirect costs can lead to issues of noncompliance and potential disallowance of costs creating an unnecessary financial burden on the entity. In this session, we will lift the veil of uncertainty and provide the participant with a thorough understanding of indirect cost.

The participant will learn the following:

· The Uniform Guidance rules on Indirect Cost

· Indirect Cost vs. Direct Cost

· The new de minimis Indirect Cost Rate

· What happens when an Indirect Cost Proposal has an unallowable cost

· What are fixed rates, provisional rates, predetermined rates and final rates

· How to prepare an Indirect Cost Proposal

This is part 1 of a 2 part course. This session is recommended for all professionals involved with the preparation and review of an indirect cost proposal.