Date Published: November 2017
No. Uniform Grant Guidance expressly excludes rent expenses from Modified Total Direct Costs (MTDC), and these expenses therefore cannot be included in the 10% de minimis rate of MTDC.
The Uniform Grant Guidance at 2 CFR 200.68, Modified Total Direct Cost (MTDC), states:
“MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval of the cognizant agency for indirect costs.”