FAQ Organization
You do not have to request indirect costs, but if you choose to, it is allowable. You have two options when requesting indirect costs: using a formal Indirect Cost Rate Agreement (ICRA) or using a “De Minimis” rate. The ICRA is a formal rate agreement that an organization has applied for and received from the federal cognizant agency (DCJS does not approve ICRAs). Organizations must have a letter or other documentation that lists the federally-negotiated rate. The “De Minimis” rate can be used by organizations that have never had a federally-approved Indirect Cost Rate Agreement. Organizations can use a rate of up to 10% of the Modified Total Direct Costs (MTDC) of their budget for indirect costs.