Among the most misunderstood topics associated with federal grants is indirect cost recovery. Policies that the federal government should pay its fair share of the facility and administrative costs incurred to support federal awards has been in place for decades, but the processes for determining how those costs are calculated and applied have often proved confusing and burdensome. In 2014, when the Office of Management and Budget (OMB) rolled out its Uniform Administrative Requirements, Cost Principles, and Audit Requirements in 2 CFR 200, they thought that they had come up with a simplified option for many non-federal entities to use in charging indirect costs—the “de minimis” indirect cost rate. This approach allows a non-federal organization to elect to apply a flat 10 percent rate to a designated base of direct costs and avoid the need to document and negotiate an indirect cost rate with a cognizant federal agency or pass-through entity. Unfortunately, that’s where the simplicity ended. In a nutshell, the de minimis rate hasn’t always worked as it was intended.
Well, now OMB has doubled down on their de minimis rate policy. With new revisions to 2 CFR 200 that take effect on October 1, OMB has raised the de minimus rate to 15 percent and refined the definition of the Modified Total Direct Costs (MTDC) to which it applies. To help affected non-federal entities put those changes in context and to transition to the new policies, this webinar will provide a fresh look at all of the requirements affecting use of the de minimis rate and address questions that have not always been effectively answered previously. You’ll learn about:
- Connecting the de minimis “policy dots;”
- Advantages and disadvantages of various indirect cost rate types
- Election of the de minimis rate by recipients and subrecipients;
- Reinforcement of OMB’s mandates for awarding agency acceptance of indirect cost rates;
- Policy prohibitions against misuse of the de minimis rate;
- Revision of the definition of Modified Total Direct Cost;
- Making the transition from the 10 percent de minimis to 15 percent;
- Making the transition from the de minimis rate to a negotiated rate;
- Required audit procedures to verify proper application of the de minimis rate.
The de minimis rate can reduce burden if everyone follows OMB’s rules. Attend this practical session to make sure you know how to do so.
WHO SHOULD ATTEND:
- Finance directors
- Accounting staff
- Grant application specialists
- Grant and contract managers
- Sponsored projects administrators
- Grant project directors
- Subaward administrators
- Internal auditors
- External auditors
Hand-out Materials:
Attendees will receive presentation slides as well as access to background materials.
Allowable Charges
The costs of webinars sponsored by Federal Fund Management Advisor™ are allowable charges to your federal grants and subgrants. The cost principles issued by OMB under its uniform guidance (and applicable to all types of awardees) state, “The cost of training and education for employee development is allowable” (2 CFR 200.472).
Attend this Live Webinar and Earn up to 1.5 CPE Credits