MAXIMUS Consulting Services will be managing the indirect cost rate calculation process on behalf of the Maine Department of Education for sub recipients of Federal funds passed through the Department.

Sub recipients of Federal awards are not required to recover indirect costs; doing so is optional for a sub recipient.

Recovered indirect costs are considered revenue to a sub recipient’s general fund.  This revenue will have the effect of lowering expenditures which are used in the calculation of tuition rates and EPS per pupil rates.

Indirect costs may only be recovered once; if a cost is included in the indirect cost rate calculation, it cannot also be charged as a direct cost to a Federal award.

Indirect cost rates are applied only to the amount of the award actually expended, not the total amount budgeted/awarded.

Including indirect costs in an award application budget does not mean the amount of the award will be increased.  The amount of entitlement awards (supplement not supplant grants) available to be applied to direct services will be reduced by the inclusion of indirect costs.  Including indirect costs in discretionary grant application budgets may result in increased funding.

Two indirect cost rates will be calculated for a sub recipient; restricted indirect cost rates are utilized with Federal awards that have a “supplement not supplant” requirement.  Restricted indirect cost rates are lower than unrestricted rates meaning, a lesser dollar amount will be recovered under indirect costs for “supplement not supplant” awards.

A template is available to provide sub recipients of Federal awards through the Maine Department of Education with a format for calculating both restricted and unrestricted indirect cost rates.  The template, with instructions for submission, is available here:

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