Understanding and Using De Minimis Indirect Cost Rate

Webinar • Thursday, April 27, 2023 2:00-3:30 p.m. EDT

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$249.00 Understanding and Using De Minimis Indirect Cost Rate (04.27.23) (On-Demand Recording)
Webinar Details

Prerequisites: Some knowledge of federal grant management and audit requirements is helpful

Recommended Field of Study: Specialized Knowledge and Applications

Program Knowledge Level: Basic

Advanced Preparation: None

When the Office of Management and Budget overhauled its federal grants management policies a few years back, it introduced a unique concept for indirect cost recovery known as the “de minimis” indirect cost rate. Federal officials apparently thought they were simplifying the lives of many recipients and subrecipients by introducing this concept. But it hasn’t actually turned out that way.

Even though OMB attempted to clarify the policy with some additional revisions to its Uniform Guidance (2 CFR 200), confusion remains. Many staff from federal agencies, pass-through entities, recipient and subrecipient organizations, and independent audit firms are still trying to understand the method and the accounting and auditing implications that go along with it.

This webinar will take on the challenge by analyzing the various policy statements about the de minimis rate contained in the Uniform Guidance and by answering the practical “retail questions” about its implementation. During this session, you’ll learn:

  • What is the basis for this policy, and what are its intended advantages?
  • Where did the 10 percent “number” come from?
  • Which recipients and subrecipients are eligible to elect use of the de minimis rate?
  • Can the de minimis rate be used on some federal awards but not others?
  • Can a federal agency or pass-through entity force a lower-tier organization to use the rate?
  • How is the de minimis rate applied?
  • What does OMB mean by the required “modified total direct cost” base in reference to the de minimis rate?
  • What kind of documentation is required to support the rate?
  • How is the rate addressed during a single audit?
  • What will happen if the policy is misapplied?
  • When can an organization decide to negotiate a different rate?

Bob Lloyd, principal of Federal Fund Management Advisor™, will conduct this authoritative session. Bob’s hands-on experience with federal indirect cost policy includes coauthorship of the federal government’s own guide for development of indirect cost rate proposals by state and local governments. 


  • Finance directors
  • Controllers
  • Accounting staff
  • Grant and contract manager
  • Sponsored projects administrators
  • Program managers
  • 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).

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  • Understand special issues confronting pass-through entities contracting with foreign organizations
  • Know which clauses flow down when crafting a subaward
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