Indirect cost rate application process announced

In response to new federal grant guidance issued by the Federal Office of Management and Budget, the Maine DOE is now required to offer the ability to recover indirect costs associated with management of federal grants to recipients of federal money passed through the Department. Indirect costs are system-wide, general management functions which support all sub-recipient initiatives.

The benefits received from these types of functions are not easily attributable to specific initiatives and therefore are difficult to measure as a direct cost. For those sub-recipients wishing to do so, an indirect cost rate provides a means to apportion the cost of those functions across multiple initiatives.

Before a sub-recipient can invoice against a federal award for indirect cost recovery, individual rates will need to be calculated. Maine DOE has contracted with MAXIMUS Consulting Services to perform the rate calculations for interested sub-recipients.

Indirect cost rate recovery is not required of sub-recipients, it is optional. To assist sub-recipients in determining if indirect cost rate recovery would be feasible prior to undertaking the rate application and approval process, Maine DOE has published an information bulletin at the link below to assist in the decision making process. If, after reviewing the informational bulletin, a sub-recipient wishes to pursue calculation of an indirect cost rate, instructions for doing so are provided here on the Department’s website.

For more information, visit Maine DOE’s indirect cost rate web page at www.maine.gov/education/audit/indirectcostrate.shtml or contact the Department’s School Finance and Compliance Joanne Allen at joanne.allen@maine.gov or 624-6790.