## Modified direct cost rate

4 Dec 2019 (1) What is the difference between Direct Costs and Indirect Costs? (b) Use a de minimis rate of up to 10% of your Modified Total Direct Costs New F&A Rate Agreement Implementation FAQ (May 2019) Modified Total Direct Costs (MTDC) consists of all direct salaries and wages, applicable fringe Facilities and administrative (F&A) costs are costs that are not readily identifiable Current FY2020 F&A/Indirect Cost Rates (for awards beginning 7/1/2019) Always use a Modified Total Direct Cost (MTDC) base when you are using rates from the University of Arizona Facilities & Administrative (F&A) cost rate.

## C. Determination of Indirect Cost Rates and Cost Allocation… elect to charge a de minimis rate of) 10% of modified total direct costs (MTDC) which may be

In 1991, the indirect cost rate cap was again raised to 26 percent of the Modified Total Direct Cost (MTDC), but this cap applied to only administrative costs at universities and institutions of higher education. Modified Total Direct Cost. §200.68 Modified Total Direct Cost (MTDC). • 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). The term “Modified” refers to certain exclusions of costs that must be removed from the total direct costs before the 10 percent indirect rate is applied to each funding source. A sponsor limits Indirect Costs (IC) to 22% of total costs Assume direct costs (DC) - tuition charge (TC) - equipment costs (E) - dollars over $25K on each subcontract (SubK) = $150,000 (Modified Total Direct Costs - MTDC) $150,000/ If a negotiated rate does not yet exist, then nonprofits are empowered either to request negotiating a rate or to elect the default rate of 10 percent of their modified total direct costs (MTDC). The National Council of Nonprofits summarized the importance of the new OMB Guidance as follows:

### a federally negotiated indirect cost rate may elect to charge a de minimis rate of up to 10% of its modified total direct costs (MTDC) which may be used

Consult sponsor guidelines for applicable rates/bases. Modified Total Direct Cost basis (MTDC). Indirect costs are NOT assessed on the following costs:. The University of Chicago's Facilities and Administrative (F&A) cost rate agreement Federal indirect costs are calculated against a Modified Total Direct Cost

### Our normal indirect cost rate is calculated on the Modified Total Direct Costs ( MTDC) base. MTDC is defined as total direct costs excluding the following:

8 Apr 2019 Modified Total Direct Cost. LHCAs small. Intermediaries. Negotiated Indirect. Cost Rate (NICRA). A negotiated rate based on identified indirect. C. Determination of Indirect Cost Rates and Cost Allocation… elect to charge a de minimis rate of) 10% of modified total direct costs (MTDC) which may be Our normal indirect cost rate is calculated on the Modified Total Direct Costs ( MTDC) base. MTDC is defined as total direct costs excluding the following: The common base used for calculating the indirect cost rate is Modified Total Direct Costs (MTDC) which is total direct costs excluding equipment, capital modified total direct costs, assume the following: (A) An indirect cost pool of $200,000. (B) Total allowable direct costs of $600,000. To calculate this rate, you Modified Total Direct Costs (MTDC). Unless otherwise indicated, use the indirect costing methodology of Modified Total Direct Costs (MTDC). MTDC is defined as to a rate by dividing it by a quantity called “Modified Total Direct Costs (MTDC).

## 16 May 2018 A direct cost is an expense whose benefit can be specifically indirect cost rates are modified total direct costs and total direct salaries (with or

The University of Chicago's Facilities and Administrative (F&A) cost rate agreement Federal indirect costs are calculated against a Modified Total Direct Cost

8 Apr 2019 Modified Total Direct Cost. LHCAs small. Intermediaries. Negotiated Indirect. Cost Rate (NICRA). A negotiated rate based on identified indirect. C. Determination of Indirect Cost Rates and Cost Allocation… elect to charge a de minimis rate of) 10% of modified total direct costs (MTDC) which may be Our normal indirect cost rate is calculated on the Modified Total Direct Costs ( MTDC) base. MTDC is defined as total direct costs excluding the following: The common base used for calculating the indirect cost rate is Modified Total Direct Costs (MTDC) which is total direct costs excluding equipment, capital modified total direct costs, assume the following: (A) An indirect cost pool of $200,000. (B) Total allowable direct costs of $600,000. To calculate this rate, you Modified Total Direct Costs (MTDC). Unless otherwise indicated, use the indirect costing methodology of Modified Total Direct Costs (MTDC). MTDC is defined as to a rate by dividing it by a quantity called “Modified Total Direct Costs (MTDC).