Roxanna,

 

Have they submitted a new rate proposal and are just waiting for the new rate? I would ask to look at their most recent rate agreement – our is good until 6/30/21 and then says to use the “same rates and conditions as those cited for fiscal year ending June 30, 2021” until the agreement is amended. The agreement also says that a proposal for fiscal year ending 6/30/2020 is due in their office by 12/31/2020. I would imagine your sub’s agreement has similar language.

 

Therefore, if they submitted a new proposal and are waiting for the new rate, they should use the most recent rate. But if they did not submit a new proposal by the due date (or receive an extension), I would say they cannot use the recent rate and must accept 10%.

 

Carolyn

 

Carolyn Elliott-Farino

Director, Sponsored Programs

Kennesaw State University

xxxxxx@kennesaw.edu;

470-578-6381

 

 

 

 

Hello all,

 

We are working with a Subrecipient that previously had a federally negotiated IDC rate that has expired. As a result, they do not have an approved IDC rate. However, they are requesting to use their expired negotiated IDC rate (which is higher than the de minimis rate).

 

The Uniform Guidance advises to use the de minimis rate of 10% MTDC when the entity has never received a negotiated indirect cost rate. What is advised when they’ve had an IDC rate previously? Any suggestions/guidance on how your institution negotiates IDC rates with subrecipients with a similar scenario?

 

Thank you!

Roxanna Garcia

 

Office of Sponsored Programs

(956) 665-5008

 

 

 

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