Indirect Cost Rate

Pursuant to authority granted by the US Department of Education, grantees may apply to the Ohio Department of Education for approval of restricted and unrestricted indirect cost rates to use to recover indirect costs from Federal grant awards.   An indirect cost rate lets an entity recover expenditures that cannot be directly charged to a federal grant. 

According to 2 CFR §200.56 and §200.414 indirect cost rates help compensate the treasurer, business manager, human resources officer and offices of operation and plant maintenance services for costs associated with applicable federal projects, for example, payroll, purchase orders and personnel. Districts calculate the indirect rate when completing their indirect cost rate proposals. The rate is the ratio of total, allowable indirect costs to modified total direct costs (less excluded costs).

Ohio uses the modified total direct costs (MTDC) methodology to determine an allowable direct costs/distribution base.  2 CFR §200.68 defines modified total direct costs as all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel under the award and up to the first $25,000 of each subaward, regardless of the performance periods of these subawards. Modified Total Direct Costs exclude 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. 

Indirect cost recovery is not additional grant funds but represents an amount that is a part of an approved program allocation. If you would like to apply for a rate, please use the links below to fill out an Indirect Cost Rate (IRC) Workbook.  Direct any questions you may have to

Indirect Cost Rate Informational Video Series 

Should I Utilize an Indirect Cost Rate?  (6:18)
Completing the Indirect Cost Rate Proposal Workbook (13:40)
What are your Indirect Costs and Adjustments? (15:29)
Calculating Fixed Indirect Cost Rate  (9:30)
What is a Sub-agreement or "The $25,000 Rule"? (8:29)
Terminology  (7:21)

Indirect Cost Rate Application Materials

Fiscal Year 2021

FY21 ICR Instructions
FY21 ICR Workbook

Fiscal year 2020

FY20 ICR Instructions
FY20 ICR Workbook

Approved Indirect Cost Rates

2018 Indirect Cost Rates
2019 Indirect Cost Rates 
2020 Indirect Cost Rates

Last Modified: 2/6/2020 2:35:24 PM