[Additional Indirect Cost Information and Example for Training
Grants]{.underline}

If you are applying for a discretionary grant that the U.S. Department
of Education considers to be a "Training grant," your indirect cost
reimbursement is limited. See the Education Department General
Administration Regulations (EDGAR), 34 CFR 75.562, Indirect cost rates
for educational training projects at:
<http://www.ed.gov/policy/fund/reg/edgarReg/edlite-part75e.html>

Indirect cost reimbursement on ED training grants is limited to the
grantee's actual indirect costs as determined by the grantee's
negotiated indirect cost rate agreement or 8% of a modified total direct
cost base, **whichever is less**. Indirect costs in excess of the 8%
limit may not be charged directly, used to satisfy matching or
cost-sharing requirements, or charged to another Federal award.

For the purposes of calculating indirect costs for training grants,
EDGAR, §75.562(c), defines a modified total direct cost base as:

**"total direct costs less stipends, tuition and related fees, and
capital expenditures of \$5,000 or more."**

Note: This limitation on indirect cost reimbursement for training grants
does not apply to agencies of State or local governments, including
federally recognized Indian tribal governments. However, the 8% limit
applies to cost-type contracts under grants, if these contracts are for
training as defined in EDGAR, §75.562(a).

Below is a simplified example for calculating indirect costs for a
training grant using the budget categories from the ED 524 form, Budget
Information -- Non-construction Programs. The ED 524 and Instructions
can be found at:
<http://www.ed.gov/fund/grant/apply/appforms/appforms.html>

For the purposes of this example, 8% of a modified total direct cost
base is used to calculate indirect costs.

  -------------------------------- --------------------- ------------ ---------------------
  1\. Personnel                                                       174,000

  2\. Fringe Benefits                                                 50,000

  3\. Travel                                                          10,000

  4\. Equipment                                                       8,200

  5\. Supplies                                                        920

  6\. Contractual                                                     4,900

  7\. Construction                                                    \-

  8\. Other (Tuition)                                                 [5,400]{.underline}

  9\. Total Direct Costs                                              253,420

                                                                      

  Calculate Modified Total Direct                                     
  Cost Base                                                           

  Total Direct Costs                                     253,420      

  Less:                                                               

  Equipment                        8,200                              

  Tuition                          [5,400]{.underline}                

                                                         13,600       

  Modified Total Direct Cost Base:                       239,820      

  Multiply \$239,820 by 8%:                              19,186       

                                                                      

  10\. Indirect Costs                                                 19,186

  11\. Training Stipends                                              6,300

  12\. Total Costs                                                    278,906
  -------------------------------- --------------------- ------------ ---------------------