Laserfiche WebLink
19 <br />M&A staff with M&A activities, and auditing costs related to the grant award to the extent required or <br />permitted by statute or 2 C.F.R. Part 200. Characteristics of M&A expenses can include the following: 1) <br />direct costs that are incurred to administer a particular Federal award; 2) identifiable and unique to each <br />Federal award; 3) charged based on the activity performed for that particular Federal award; and 4) not <br />duplicative of the same costs that are included in the approved Indirect Cost Rate Agreement, if <br />applicable. <br />Procedures for Establishing Indirect Cost Rates <br />The requirements and procedures for establishing indirect cost rates are the same for all the preparedness <br />programs outlined in the Preparedness Grants Manual. The process for establishing the indirect cost rate <br />varies based on the type of entity and the amount of funding they receive: <br />•If the entity is a non-governmental entity, and is a subrecipient, indirect cost rate procedures are <br />outlined in 2 CFR 200.332(a)(4). These types of entities may either use the de minimis rate or <br />negotiate a rate with the pass-through entity. <br />•If the subrecipient is a state or local governmental entity, indirect cost rate procedures are <br />established in 2 CFR 200, Appendix VII. <br />o Per Paragraph D.1.b. of Appendix VII, state or local governmental entities receiving <br />grant funds must develop an indirect cost rate proposal. <br />▪If the state or local entity receives more than $35 million in grant funding, the <br />proposal must be approved by the cognizant agency. <br />▪If a state or local entity receives $35 million or less in grant funding, they have to <br />develop an indirect cost rate proposal, but that indirect cost rate proposal does not <br />need to be approved by the cognizant agency. <br />•If a state or local governmental entity wants to use the de minimis rate (instead of developing an <br />indirect cost rate proposal), they can request a case-by-case exception from FEMA (per 2 CFR <br />200.102(b)). <br />  <br />  <br />City Council 35 – 28 11/7/2023