Indirect Cost Rates

What is an indirect cost rate?

An indirect cost rate is a percentage (indirect cost pool/direct cost base) used to distribute indirect costs to all cost centers benefiting from those costs.

Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?

Virtual Binders Glossary

FAQ: If I don’t have an approved indirect cost rate, can I still allocate funds for indirect costs?

What steps do I take to add indirect costs to my CoC Program grant budget?

  1. Complete questions about indirect costs in CoC Program new and/or renewal project application
  2. Identify direct costs for the grant
  3. Group all indirect costs for entire organization
  4. Determine how you will compute indirect costs (e.g., approved negotiated rate, de minimis rate, cost allocation)
  5. Compute actual indirect costs using identified method
  6. If project recipients are allocating CoC Program funds according to an indirect cost rate, they must submit to HUD their federally approved indirect cost rate or rate proposal within three months of grant award