Examples
Worked examples
- Is an instance
A community-based research non-profit charges 10 percent de minimis on its NIH grant, applied to MTDC.
- Is an instance
A new university research office uses the de minimis rate during its first three years while preparing a full F&A rate negotiation.
Counter-examples
Looks similar, but isn't
- Not an instance
An institution with a current negotiated 55 percent F&A rate cannot elect 10 percent de minimis.
- Not an instance
A flat 10 percent administrative fee charged by a foundation outside US federal rules is not the de minimis rate.
Editorial commentary
Under Uniform Guidance 2 CFR 200.414(f), recipients that have never received a negotiated indirect cost rate may use the de minimis rate of 10 percent of MTDC indefinitely or until a rate is negotiated. The rate is used most commonly by small non-profits, community organisations, and new academic spin-outs that have not yet built the cost accounting infrastructure for a full F&A rate proposal. Recent revisions to 2 CFR 200 have raised the threshold and clarified that no formal election is required. It is termed 'NIH' colloquially but applies to all US federal agencies.
References
- US Office of Management and Budget Uniform Guidance 2 CFR 200.414(f).
Also known as
10 percent de minimis · De minimis indirect rate
Machine-readable encodings
Use in your systems
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vocab-term="De minimis rate (NIH)"
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"description": "A federally permitted 10 percent indirect cost rate that organisations without a negotiated F&A rate may elect to use on US federal awards, applied to modified total direct costs (MTDC).",
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