Additional Indirect Cost Information And Example For Training Grants (For ED 524) {ED 524}

Additional Indirect Cost Information and Example for Training Grants If you are applying for a discretionary grant that the U.S. Department of Education considers to be a "Training grant," your indirect cost reimbursement is limited. See the Education Department General Administration Regulations (EDGAR), 34 CFR 75.562, Indirect cost rates for educational training projects at:http://www.ed.gov/policy/fund/reg/edgarReg/edlite-part75e.html Indirect cost reimbursement on ED training grants is limited to the grantee's actual indirect costs as determined by the grantee's negotiated indirect cost rate agreement or 8% of a modified total direct cost base, whichever is less. Indirect costs in excess of the 8% limit may not be charged directly, used to satisfy matching or cost-sharing requirements, or charged to another Federal award. For the purposes of calculating indirect costs for training grants, EDGAR, §75.562(c), defines a modified total direct cost base as: "total direct costs less stipends, tuition and related fees, and capital expenditures of $5,000 or more." Note: This limitation on indirect cost reimbursement for training grants does not apply to agencies of State or local governments, including federally recognized Indian tribal governments. However, the 8% limit applies to cost-type contracts under grants, if these contracts are for training as defined in EDGAR, §75.562(a). Below is a simplified example for calculating indirect costs for a training grant using the budget categories from the ED 524 form, Budget Information ­ Non-construction Programs. The ED 524 and Instructions can be found at: http://www.ed.gov/fund/grant/apply/appforms/appforms.html For the purposes of this example, 8% of a modified total direct cost base is used to calculate indirect costs. 1. Personnel 2. Fringe Benefits 3. Travel 4. Equipment 5. Supplies 6. Contractual 7. Construction 8. Other (Tuition) 9. Total Direct Costs Calculate Modified Total Direct Cost Base Total Direct Costs 253,420 Less: Equipment 8,200 Tuition Modified Total Direct Cost Base: Multiply $239,820 by 8%: 10. Indirect Costs 11. Training Stipends 12. Total Costs 5,400 13,600 239,820 19,186 19,186 6,300 278,906 174,000 50,000 10,000 8,200 920 4,900 5,400 253,420 American LegalNet, Inc. www.FormsWorkflow.com