Indirect Cost Rates for EPA Grants
When applying for a grant:
- If an applicant plans to include indirect costs as part of the proposed grant project budget, it must submit a copy of their current, approved Indirect Cost Rate Agreement to EPA Region 10 Grants Administration Unit (GAU).
- If an applicant does not have a negotiated agreement, it must provide documentary proof that it has submitted an indirect cost rate proposal to the cognizant agency.
- Without one of these two documents, indirect costs will be disallowed.
When the grant is awarded:
- To be eligible for reimbursement of indirect costs, grantees must have a signed, negotiated Indirect Cost Rate Agreement covering the time period for which they are claiming the indirect costs.
- For example, if your latest indirect cost rate agreement is through 9/30/2004, grantees must not include indirect costs that were incurred beyond that date in reimbursement requests made to EPA. Doing so violates OMB Circular A-87, which is incorporated as a condition of your assistance agreement.
During the active period of the grant:
- Grantees are responsible for reporting indirect costs claimed in each Financial Status Report (FSR) submitted. Box 11 of the form, SF 269A, requires grantees to show
- (a) the approved indirect cost rate,
- (b) the base amount you have applied this rate to,
- (c) the total amount, and
- (d) the total Federal share of funds that were expended on indirect costs.
- These break-outs must be shown separately for each year that is covered by the FSR. (Box 12 can be used to write in this information by year.)
At the close of the grant:
- Your submission of a complete final FSR begins the close-out process. To be complete, the final FSR must:
- report all allowable incurred costs, and
- show indirect costs (and cost rates) for each year in which indirect costs were reimbursed.
- as noted above, Box 11 must be filled out entirely and Box 12 can be used to note the information year-by-year.
SUGGESTION: Please send GAU copies of all negotiated Indirect Cost Rate Agreements and/or evidence of submitted indirect cost rate proposals. Sending these documents routinely will enable GAU to keep our files current and administer your grants more efficiently.