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and the grantee. In computing the amount of indirect cost to the grantee, the commissioner will accept the indirect cost rate in effect between the grant applicant and the federal government at the time of the grant award. An amount allocated for indirect costs of a grant project is considered part of the grant award and not an addition to it. An increase or decrease in the indirect cost rate made after the grant award does not affect the amount of the grant award. A grant applicant desiring approval in a grant agreement of payment of indirect costs in accordance with this subsection must include in the grant proposal, or have on file with the department, a copy of the most recent federally-approved indirect cost rate and other relevant documentation as the department directs. If a grantee enters into a subcontract with an agency that also has a federally-approved indirect cost rate, the total indirect cost that may be paid under this subsection may not exceed the amount allowed in the grantee’s indirect cost rate. It is the responsibility of the grantee and subcontractor to negotiate an equitable allocation of indirect costs. A grantee shall make available to the state and to any appropriate municipal government, upon request, all federal audit data relating to indirect costs for the grant project paid by the federal government. (q) Except for capital grant projects, an applicant that does not have a federally approved indirect cost rate may include administrative costs in the applicant’s proposed budget as direct costs. The applicant shall document the proposed costs in the applicant’s justification narrative for the proposed budget. (r) The department will specify the amount of administrative and general costs the grantee may charge a capital grant project in the request for proposal, request for letters of interest, or other method of solicitation, and in the grant agreement. (s) A grantee may use grant money to pay for costs in support of the grant project, other than those costs described in this section, only after receiving department approval. (t) A grantee may not use grant money to pay for lobbying or fund raising activities. (Eff. 4/11/81, Register 78; am 6/23/85, Register 94; am 7/21/2002, Register 163; am 6/24/2004, Register 170; am 10/16/2012, Register 204) Statutory Authority: Authority: AS 18.05.040 AS 44.30.020 AS 47.30.530

AS 18.08.010 AS 47.05.010 AS 47.37.030

AS 18.08.080 AS 47.06.010 AS 47.37.045

AS 18.25.100 AS 47.20.075 AS 47.40.041

AS 18.28.010 AS 47.20.110 AS 47.40.120