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Louisiana LIHEAP Service Delivery Guide 61 | P a g e

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Indirect costs are those expenditures which are not readily assignable only to the LIHEAP program. These may include, but not be limited to, shared management and administrative salaries, information technology, rent, utilities, and/or copying machines. De minimis rate. Subgrantees that do not have a current Federal negotiated indirect cost rate (including provisional rate) may elect to charge a de minimis rate of up to 15 percent of modified total direct costs (MTDC). The Subgrantee is authorized to determine the appropriate rate up to this limit. Subgrantees are not required to use the de minimis rate. When applying the de minimis rate, costs must be consistently charged as either direct or indirect costs and may not be double charged or inconsistently charged as both. The de minimis rate does not require documentation to justify its use and may be used indefinitely. Once elected, the Subgrantee must use the de minimis rate for all Federal awards until the Subgrantee chooses to receive a negotiated rate. (2 CFR 200.414)

7.4 Administrative Costs The term administrative costs means costs necessary for the proper administration and management oversight of the Louisiana LIHEAP program, including all costs, both direct and indirect, associated with the general administration and coordination of the program; supportive services including accounting, human resource, and procurement; development of policies, goals and objectives; participant intake and eligibility determination; and monitoring. All Federal funds used to administer LIHEAP activities (except for the costs associated with client education – Assurance 16) count against the 10% State limit and are considered an administrative cost. Examples include:  Salaries and benefits of staff performing administrative and coordination functions (fiscal, executive, and support);  Activities related to intake functions, including eligibility determination, assessing income and benefit levels, and application processing;  Preparation of program plans, budgets, and schedules;  Monitoring of programs and projects;  Fraud and abuse prevention;  Procurement activities;