§ 75.562 - Indirect cost rates for educational training projects; exceptions.

§ 75.562 Indirect cost rates for educational training projects.

Cross Reference

Link to an amendment published at 89 FR 70330, Aug. 29, 2024.

; exceptions.

(a) Educational training grants provide funding funds for training or other educational services. Examples of the work supported by training grants are summer institutes, training programs for selected participants, the introduction of new or expanded courses, and similar instructional undertakings that are separately budgeted and accounted for by the sponsoring institution. These grants do not usually support activities involving research, development, and dissemination of new educational materials and methods. Training grants largely implement previously developed materials and methods and require no significant adaptation of techniques or instructional services to fit different circumstances.

(b) The Secretary uses the definition in paragraph (a) of this section to determine which grants are educational training grants.

(c)

(1) Indirect cost reimbursement on a training grant is limited to the lesser of the recipient's actual indirect costs, as determined in its negotiated indirect approved indirect cost rate agreement, or eight 8 percent of a the modified total direct cost base, whichever amount is less.

Note to paragraph (c)(1):

If the grantee did

(MTDC) base. MTDC is defined in 2 CFR 200.1.

(2) If the grantee does not have a federally recognized indirect cost rate agreement on the date on which the training grant

was

is awarded, the grantee may elect to use the temporary indirect cost

recovery is also limited to the amount

rate authorized under § 75.560(d)(3)

.

(2) For the purposes of this section, a modified total direct cost base consists of total direct costs minus the following:

(i) The amount of each sub-award in excess of $25,000.

(ii) Stipends.

(iii) Tuition and related fees.

(iv) Equipment, as defined in 2 CFR 200.33.

Note to paragraph (c)(2)(iv):

or a rate of 8 percent of the MTDC base. The de minimis rate may not be used on educational training programs.

(i) If the grantee has established a threshold for equipment that is lower than

$5,000 for other purposes, it

the amount specified in the Uniform Guidance, the grantee must use that threshold to exclude equipment

under the modified total direct cost base for the purposes of this section

from the MTDC base.

(ii) For purposes of the MTDC base and application of the 8 percent rate, MTDC includes up to the amount specified in the definition of MTDC in the Uniform Guidance of each subaward, each year.

(3) The eight 8 percent indirect cost rate reimbursement limit specified in paragraph (c)(1) of this section also applies to sub-awards when subrecipients issue subawards that fund training, as determined by the Secretary under paragraph (b) of this section.

(4) The eight 8 percent limit does not apply to agencies of Indian tribal Tribal governments, local governments, and States as defined in 2 CFR 200.54, 200.200.64, and 200.90, respectively.1.

(5) Indirect costs in excess of the eight 8 percent limit may not be charged directly, used to satisfy matching or cost-sharing requirements, or charged to another Federal award.

(d) A grantee using the training rate of eight 8 percent is required to have documentation available for audit that shows that its negotiated indirect cost rate is at least eight percent.

(Authority: 20 U.S.C. 1221e-3 and 3474)

[59 FR 59582, Nov. 17, 1994, as amended at 72 FR 69147, Dec. 7, 2007; 79 FR 76092, Dec. 19, 2014

maintain documentation to justify the 8 percent rate.

[89 FR 70330, Aug. 29, 2024]