Indirect costs on USDA AFRI proposals – Calculations and Cayuse

A reminder that the indirect cost rate on USDA AFRI proposals is 28.2% of *Total Direct Costs*.
Page 134 of the AFRI Request for Applications states that the indirect cost rate for these proposals is capped at 22% of Total Federal Funds. Because Total Federal Funds = Total Direct + Total Indirect, we have to “back into” the rate as a percentage of Total Directs – the calculation to arrive at 28.2%, then, is 22/78. This indirect cost rate is based on the statutory rate established by Section 7132 of the Food, Conservation and Energy Act amended section 1462(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310(a)).

*In Cayuse*, the budget forms are set to default to the university’s negotiated indirect cost rate. When you enter a budget for a USDA AFRI proposal into Cayuse, be sure that “MTDC_On_campus” is selected as the indirect cost type for ALL budget categories (Cayuse does not have a “TDC” option, so this is the workaround to achieve the same result). Cayuse will list tuition remission as excluded, and will also apply an indirect cost exclusion to the portion of any subcontract that exceeds $25,000. The tuition remission category needs to be changed to “MTDC_On_campus” and the full amount of all subcontracts must be included in the IDC base in order to ensure that your indirect costs will calculate correctly.

If you have any questions when preparing an AFRI budget, contact your department’s contact in the Research Division,