We allow grantees to use up to 10 percent of the total funds the grantee requests and up to 10 percent of the one-to-one match we require on indirect costs. Our indirect cost allotment is not an indirect cost rate that applies to the total modified direct costs, but instead is an overall allotment from the award for the institution to use for indirect costs.
A grantee determines their total budget for each year, then allocates10 percent of what they are requesting from FFAR and 10 percent of their match to be used for indirect costs. These amounts must be drawn in tandem equally throughout the life of the project. Ninety percent of the project cost must go directly to the project. Grantees may not offer any part of their indirect costs as a match.
The unrecovered indirect cost is the difference between a grantee’s federally negotiated indirect cost rate and FFAR’s 10 percent indirect cost allotment. The unrecovered indirect cost will not be allowed as a matching contribution. FFAR, an independent 501(c)(3) nonprofit, is not a federal agency and, therefore, a negotiated federal indirect cost percentage does not apply.