Region 10 Grants: Policy on Indirect Costs

As a recipient of federal assistance funds, you are required to have a current approved Indirect Cost Rate agreement before claiming indirect costs as an allowable grant expense. The following policy applies to all grant applicants and recipients in EPA Region 10:

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State and Tribal Organizations

If your organization is a state or tribal organization and you plan to propose indirect costs as part of your grant project budget, you must have on file with the Region 10 Grants Administration Unit:
• A current approved Indirect Cost Rate Agreement; or
• Documentation that a current indirect cost rate proposal has been submitted to your cognizant agency. This documentation must indicate the requested rate.

You may use either the approved or proposed rate in your proposed budget. Please provide a copy with your application.
If you can provide neither, the indirect costs in your proposal will be disallowed.

National Business Center - Basic guidance about where and how to submit Indirect Cost Proposals (ICPs) to obtain a current negotiated indirect cost rate for federal grants and contracts from the U.S. Department of the Interior (DOI), National Business Center (NBC) Indirect Cost Services (ICS).

After the grant is awarded: to be eligible to claim and be reimbursed for indirect costs you must have a signed, negotiated Indirect Cost Rate Agreement covering the time period for which you are claiming the indirect costs. A copy of that agreement must be on file with the Region 10 Grants Management Office for those costs to be allowable. Documentation of a proposed rate is not acceptable for reimbursement of indirect costs.

Local Governments

Local governments desiring to include indirect costs are required to prepare and retain a copy of their cost allocation plan at the local government level.

Other Organizations

Entities other than State, local, and tribal organizations, desiring to include indirect costs, should contact the EPA Region 10 Grants Administration Unit for further information.
How to Prepare an Indirect Cost Rate Proposal for a Non-Profit Organization (PDF) (35 pp, 276 K)