10% De Minimis Rate

The 10% de minimis rate must only be used to pay for overhead costs that are not directly charged to federal awards. If all costs are charged directly to the federal award (e.g., space costs, utility, and administrative costs), then the recipient should not also charge the 10% de minimis rate. As described in 2 CFR section 200.403, costs must be consistently charged as either an indirect or direct cost, but may not be doubled charged or inconsistently charged as both.

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FAQ: What is the 10% de minimis rate?

Is the 10% administrative cost the same as the 10% de minimis indirect cost?

No, they are not the same. The CoC Program Interim Rule allows project applicants to request an amount up to 10% of other project grant line items for administrative costs. The 10% de minimis indirect cost rate may be used by any non-federal entity that has never received a negotiated indirect cost rate. This rate would be charged against modified total direct costs (MTDC). See 2 CFR 200.414(f). MTDC includes all direct salaries and wages, applicable fringe benefits, materials and supplies, services, and travel. MTDC does not include equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, and participant support costs. See 2 CFR 200.68.

How do I document expenses for indirect costs when I use the 10% de minimis rate?

A non-federal entity that has never received a negotiated indirect cost rate and that uses the 10% de minimis rate does not need to provide proof of its indirect costs. The 10% de minimis rate was designed to reduce the burden for small non-federal entities.