Common use of Indirect Rate Clause in Contracts

Indirect Rate. The Grantee is entitled to reimbursement of indirect costs, subject to any statutory or regulatory administrative costs limitations, if they have a current rate agreement or have submitted an indirect rate proposal to the appropriate federal agency for review and approval. i. The Grantee is responsible for maintaining an approved indirect cost rate throughout the life of the Agreement and must provide copies of all approved indirect rate agreements to the Department as they are received from the federal agency. ii. Budgets that have been placed with an indirect rate not yet approved by the federal agency for project administrative expenses, are subject to revision based on the rejection or approval of the final approved indirect rate. If the indirect rate proposal was rejected or adjusted by the federal agency, the Grantee will be required to adjust project administration expenses already incurred to the appropriate amount as required under federal regulations. iii. Indirect costs shall be calculated on a time and materials basis with justification provided by invoices, receipts, and time sheets or using a federally approved indirect rate assigned to the Grantee.

Indirect Rate. The Grantee is entitled to reimbursement of indirect costs, subject to any statutory or regulatory administrative costs limitations, if they have a current rate agreement or have submitted an indirect rate proposal to the appropriate federal agency for review and approval. i. The Grantee is responsible for maintaining an approved indirect cost rate throughout the life of the Agreement and must provide copies of all approved indirect rate agreements to the Department as they are received from the federal agency. ii. Budgets that have been placed with an indirect rate not yet approved by the federal agency for project administrative expenses, are subject to revision based on the rejection or approval of the final approved indirect rate. If the indirect rate proposal was rejected or adjusted by the federal agency, the Grantee will be required to adjust project administration expenses already incurred to the appropriate amount as required under federal regulations. iii. Indirect costs shall be calculated on a time and materials basis with justification provided by invoices, receipts, and time sheets or using a federally approved indirect rate assigned to the Grantee.. EXAMPLE