Monthly Webinar | Understanding Indirect Cost and How to Maximize Your Grant Opportunities-Video Recording

Video Transcription

Video Summary

In this NGMA webinar, Nicki Lettini, VP of Indirect Services at eCivis, provides an extensive overview of indirect costs and their role in maximizing grant opportunities. She explains the difference between cost allocation plans and indirect cost rates: cost allocation plans assign agency-wide support costs to various departments or programs, while indirect cost rates determine the percentage applied to each program for full cost reimbursement. Understanding indirect costs as part of the “true cost” of service is crucial for strategic decision-making and organizational sustainability.<br /><br />Nicki addresses common misconceptions, such as the belief that indirect costs reduce grant funds or indicate inefficiency. Instead, indirect costs represent necessary support functions like finance, HR, and IT and are essential for program execution. She discusses regulatory frameworks including OMB Circular A-87 and the current 2 CFR Part 200 uniform guidance, emphasizing their importance in indirect cost calculations and compliance.<br /><br />A detailed case study on police body cam grants illustrates the significant indirect costs often overlooked, such as video storage and public records processing, which require agency subsidy when not recovered through grants. Nicki also explains methods for calculating indirect costs, including simplified one-rate and more precise multiple methods, advocating for annual updates and stakeholder buy-in.<br /><br />The webinar covers opportunities to maximize indirect cost recovery, including the use of negotiated indirect cost rates (NICRAs) rather than the 10% de minimis rate, and the new allowance to apply indirect costs as grant match contributions. Nicki encourages organizations to understand and negotiate their indirect cost rates to better capture full program costs and improve grant sustainability. She concludes by answering participant questions and encouraging ongoing dialogue at the NGMA conference.

Keywords

Indirect Costs

Cost Allocation Plans

Indirect Cost Rates

Grant Opportunities

OMB Circular A-87

2 CFR Part 200

Negotiated Indirect Cost Rate Agreement (NICRA)

De Minimis Rate

Grant Match Contributions

Police Body Cam Grants