Understanding and Using the De Minimis Indirect Cost Rate

Webinar • Tuesday, March 19, 2024 • 2:00-3:30 p.m. EDT

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$249.00 Understanding and Using the De Minimis Indirect Cost Rate (03.19.24) (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. The federal officials apparently thought this action would simplify the lives of many recipients and subrecipients. But it hasn’t actually turned out that way.

The problems may partly stem from use of an arcane Latin phrase — de minimis. OMB has tried to clarify how the methodology works with multiple Frequently Asked Questions documents and actual regulatory changes. OMB has even proposed to raise the original rate from 10% to 15%, presumably to encourage more organizations to elect its use.

This webinar will analyze the various policy statements about the de minimis rate and answer the practical concerns that the broad federal grants community continues to raise. During this detailed session, you’ll learn answers to these and other questions:

  • What is the basis for this policy, and what are its intended advantages?
  • Where did the ten percent come from?
  • Which recipients and subrecipients are eligible to elect use of the de minimis rate?
  • Can the 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 rate applied?
  • What does OMB mean by the required “modified total direct cost” base in this context?
  • What kind of documentation is required to support the rate?
  • How is the rate addressed during a single audit?
  • What happens if the policy is misapplied?
  • When can an organization decide to negotiate a different rate with the federal government?
  • How do the federal government and the recipient manage the transition to a negotiated rate?

Bob Lloyd, principal of Federal Fund Management Advisor™, will conduct this authoritative session. Bob’s experience with federal indirect cost policy includes coauthorship of the federal government’s guide for development of indirect cost rate proposals by state and local governments. During his long career in federal award implementation, he has conducted hundreds of training sessions on grant cost allowability, proper charging practices, and indirect cost recovery.


  • Grant and contract manager
  • Sponsored projects administrators
  • Finance directors
  • Controllers
  • Accounting staff
  • 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
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