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the grant as administrative costs in accordance with the provisions outlined below [see <br />section on grant writers below]. We will assess the reasonableness of the administrative <br />costs requested in each application and determine if it is reasonable and in the best <br />interest of the program. <br />Indirect Costs. Applicants that have an approved indirect cost rate may charge <br />indirect costs to the grant if they submit the documentation that supports the rate to us. <br />Indirect cost rates must be formally established and approved by the applicant's <br />cognizantFederal agency. We will allow the rate to be applied as long as it is consistent <br />with its established terms. For example, some indirect cost rates may not apply to capital <br />procurements; in this case, indirect cost rates would not apply for a grant to purchase <br />equipment or a vehicle. <br />Audit Costs. Some grantees with large awards may be required to undergo an <br />audit in accordance with ONIB Circular A-133. Specifically, recipients of Federal <br />funding that spend in excess of $500,000 of Federal funds m a year must undergo an <br />audit. (For more information about the Circulars, go to <br />www.whitehouse.�ov/omb/circulars.) The costs incurredfor such an audit wouldbe an <br />eligible expenditure if included in the proposal's budget. You may wish to consider <br />including anticipated costs of such an audit if you are applying for a significant level of <br />funding. We will allow you to charge a prorated share of the costs of the single audit to <br />the grant. For example, if you received $100,000 from the AFG program and $400,000 <br />from the Forestry Service, we will allow you to charge one-fifth of the audit costs to the <br />AFG program grant. We do not require any other audits; therefore, you cannot charge <br />any other audit expenses to the grant. <br />� <br />