Alaska Admin. Code tit. 13, § 95.200 – Indirect costs

(a) An applicant that does not have a federally approved indirect-cost rate may include administrative costs in the applicant's proposed budget as direct costs. The applicant shall document the proposed costs in the applicant's justification narrative for the proposed budget.
(b) An applicant that has an indirect-cost rate agreed upon by the federal government and the grantee as an accurate reflection of the cost of the items included under that rate may use that indirect cost rate for the grant proposal, subject to the following:
1. (1) if a grant will materially affect the indirect-cost rate, the applicant shall notify the federal government at the time the applicant applies for the grant and, if the applicant receives a grant, shall provide evidence to the council that the indirect-cost rate has been adjusted, as necessary, by the end of the grant period;
2. (2) in computing the amount of the grant to an applicant, the council will accept the indirect-cost rate most recently negotiated with the federal government at the time of the award of the grant; an amount allocated for indirect costs in a grant is considered part of the grant and not an addition to it; an increase or decrease in the indirect-cost rate made after the award for the grant will not affect the amount of the grant;
3. (3) an applicant desiring approval of indirect costs in a grant must include in the grant application a copy of the federal indirect-cost agreement indicating the indirect-cost rate, the period of applicability of the indirect-cost rate, and relevant documentation;
4. (4) if a grantee enters into a subcontract with an agency that also has a federally approved indirect-cost rate, the total indirect cost that may be paid under this subsection may not exceed the amount allowed in the grantee's indirect-cost rate; it is the responsibility of the grantee and subcontractor to negotiate an equitable allocation of the indirect costs;
5. (5) a grantee shall, upon request, make available to the state and to an appropriate local government, if any, all federal audit data relating to indirect costs of the grant project paid by the federal government.

(Eff. 6/25/88, Register 106)

Authority: AS 18.66.050