Indirect Cost Limitation for FY 2006 and FY 2007
The indirect costs (F & A) for awards issued on a competitive basis by CSREES using fiscal year (FY) 2006 appropriations are limited to 20 percent of the total Federal funds provided under each award, except for grants issued under the Small Business Innovation Research Program, which may receive full allowable indirect costs. CSREES anticipates that the FY 2007 Appropriations Act will include a similar limitation. Therefore, when preparing budgets, applicants should limit their requests for recovery of indirect costs to the lesser of their institution's official negotiated indirect cost rate or the equivalent of 20 percent of total Federal funds awarded. Another method of calculating the maximum allowable is 25 percent of the total direct costs. Please note that if the 2007 Appropriations Act contains a different indirect cost limitation CSREES will contact each successful applicant to apply the correct rate prior to awarding a grant. Some programs are not subject to this limitation. To determine applicability, check the appropriate Request for Applications (RFA).
This percentage was established by Section 710 of the General Provisions of the FY 2004 Consolidated Appropriations Act (Public Law 108-199), maintained in Section 710 of the General Provisions of the FY 2005 Consolidated Appropriations Act (Public Law 108-447) and in Section 709 of the FY 2006 Consolidated Appropriations Act (Public Law 109-97).
New Policy on Indirect Costs Under CSREES Awards Using Reimbursable Funds From Another Federal Agency
Effective September 19, 2005, indirect costs may be requested for awards supported with reimbursable funds that CSREES accepts from another Federal Agency.
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