(1) Indirect cost differential is required by law or regulation. In accordance with CFR 200.414 (c) (1), a federal authority must use a different rate than that negotiated by the federal government, to the extent required by law or federal regulation. For such cases within the DOI, the official auction act must document the specific statutes or regulations requiring the waiver. (4) Voluntary reduction in the indirect cost rate. For each individual award, a proposed candidate and/or recipient may reduce or eliminate the indirect cost rate of the base costs. The choice must be voluntary and cannot be required by the awarding entity, NOFO, the program or any other non-legal or non-regulatory requirement. For these specific and optional reductions, the DOI may accept the lower rate, provided that the notice of award clearly documents the voluntary choice of the beneficiary. Once DOI has accepted the lower rate, this rate applies for the duration of the premium. As so many JVA clients apply for scholarships with the U.S. Department of Health and Human Services (HHS), this article focuses on the process with that agency. Within HHS, cost allocation Services verifies and negotiates indirect cost rates, ancillary benefit rates and special rates.
While each federal authority may have its own requirements, you can see an example of an indirect cost proposal concluded for non-profit organizations at HHS on rates.psc.gov/fms/dca/np_exall2.html. c) For any deviation from the indirect cost rate negotiated by the federal government, including legal, regulatory, programmatic and voluntary costs, the basis for the direct costs applied to the indirect rate must be: (5) Indirect costs not covered. Under 2 CFR 200.405, indirect costs that are not recovered due to discrepancies with the federally negotiated rate are not allowed to be recovered in any other way. (1) the same basis as that defined in the negotiated agreement on the indirect costs of the beneficiary when the recipient has an indirect costs agreement negotiated by the federal government; or your well-known agency will ultimately approve your indirect cost rate and other rates, such as the calculation of incidental fees and computer royalty rates.