NICRA
To be reimbursed for indirect costs, you must first establish an appropriate negotiated indirect cost rate agreement (NICRA). To do this, prepare an indirect cost rate proposal and submit it to the cognizant federal agency. The cognizant federal agency is generally determined based on the preponderance of federal dollars you receive.
An entities indirect cost rate is with its cognizant agency that it predominantly does business with. This can be any Federal Agency.
The term “de minimis rate” refers to the rate that is available to certain recipients (and certain subrecipients, which is 10% of “modified total direct costs” (MTDC). This is specifically defined in 2 CFR 200.68. This definition must be followed. If your indirect cost rate is over 10%, you will need a NICRA with your cognizant agency, which is the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans and indirect cost proposals on behalf of all Federal agencies.
All direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award)
If the Forest Service (FS) is your cognizant Agency and you need to obtain a NICRA, please visit FS Resource Audit branch (RAB) Audit and Assurance Staff | US Forest Service (usda.gov). Refer to the Appendix for the FS NICRA application that you may be required to submit. Please contact the RAB before filling out the form below.
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