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3.11 Indirect Costs

No Approved Plan

If you do not have an approved Federal indirect cost rate, you will be unable to recover funds budgeted for indirect costs until a rate is approved.

  • A special condition will be added to the award prohibiting the obligation, expenditure, or drawdown of funds reimbursement for indirect costs until an indirect cost rate has been approved by your cognizant Federal agency, and a Grant Adjustment Notice has been issued retiring the special condition.
  • There is an exception: If you are a unit of government within a local jurisdiction to which the Office of Management and Budget (OMB) has not assigned a cognizant Federal agency, then you are not required to submit your indirect cost proposal, unless the awarding agency requires a copy of the proposal.