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Centralized Indirect Cost System

The Centralized Indirect Cost Rate System will be available beginning August 1, 2016 to invited grantees. To be invited, grantees must have completed the registration process and have an approved Internal Controls Questionnaire (ICQ). ICQs are approved by the cognizant agency.

If your organization has not started the registration process, please do so immediately using the following link: https://grants.illinois.gov/registration

ICQ information will be sent to you upon successful registration. Grantees will not be able to access the ICQ until registration is complete.

If your organization has completed the registration process and the ICQ but has not received notification of ICQ approval, please reach out to your cognizant agency to determine status. Grantees will NOT be invited to the Centralized Indirect Cost Rate System until the ICQ is approved by the cognizant agency.

The following templates are provided to assist in the completion of the Indirect Cost establishment process. These templates are not required, but organizations are strongly urged to use them in order to ensure all necessary information is included for successful and expedient completion of this process.

 

State of Illinois Indirect Cost Rate proposal and election deadlines


INITIAL SUBMISSION (Applies to all State of Illinois Grantees for SFY ’17)
The State of Illinois Centralized Indirect Cost Rate submission deadline has been extended to November 1, 2016 for Grantees with an effective State of Illinois award date of July 1st 2016.
If an award was issued after August 1st 2016, an indirect cost proposal or rate election must be initiated with the Centralized Indirect Cost Rate system upon notice of award.  The indirect cost rate proposal or rate election must be completed no later than three (3) months after the effective date of the State award.
ANNUAL RENEWAL
Uniform Guidance (2 CFR 200) requires annual submission of an indirect cost proposal or rate election.  The Centralized Indirect Cost Rate system will be used for annual renewals. Annual submissions must be received within six (6) months after the Grantee’s fiscal year end.
 STATE OF ILLINOIS AGENCY AND GRANTEE INFORMATION
A “qualified” State of Illinois Registration and acceptance of the Fiscal and Administrative Risk Assessment (ICQ) triggers an automated invitation to the Centralized Indirect Cost Rate System.  The Grantee’s ICQ contact will receive an email invitation to the Centralized Indirect Cost Rate System.
Questions Regarding the Indirect cost rate Extention
For questions regarding the submission deadline extension for indirect cost rate proposals or rate elections, please contact a representative from your state awarding agency or OMB.GATA@Illinois.gov 

 

 


 

Who is required to use the Crowe Horwath CARS system for indirect cost rates?

  • Any organization that receives a grant from a state of Illinois grant making agency.
  • If a grantee organization has a federally negotiated rate, they are required to provide information through the indirect cost rate system.  The system will provide instructions to complete this process.
  • If a grantee organization chooses to elect the 10% de minimis rate, they are required to make this election in the indirect cost rate system. The system will provide instructions to complete this process.
  • If a grantee organization elects to negotiate an indirect cost rate, they are required to submit an indirect cost rate proposal.  Templates, examples and training are available on the GATA website Grantee Links tab.  The system will provide instructions to complete this process.
  • If a grantee organization elects not to charge a rate, they are required to formally make this election through the centralized indirect cost rate system. The system will provide instructions to complete this process.
  • Local Education Agencies (LEA) will be allowed to use their rates negotiated with the Illinois State Board of Education and will also be accepted by state grant making agencies.  LEAs will not be required to negotiate a rate with the State of Illinois centralized indirect cost rate contractor and state grant making agencies will accept the rate.


 

Centralized Indirect Cost Rate System Guidelines

 

  • Illinois received permission from the Federal Government to centralize the negotiation of indirect cost rates.
  • This allows grantees to negotiate one rate if they receive grants from multiple State of Illinois agencies
  • All State of Illinois agencies must accept the centralized negotiated rate unless there are federal program limitations, cap requirements or supplanting issues.
  • A grantee may volunteer to accept a lower indirect cost rate, but state agencies are not allowed to force or coerce a grantee to take a lower rate
  • All grantees are required to make the indirect cost rate elections in the centralized system
 

 


Recently asked questions regarding the State of Illinois Centralized Indirect Cost Rate System.

 

FAQs - Indirect Cost Rate Questions

FAQs - Crowe Activity Review System (CARS)

 

What are the due dates for Indirect Cost Rate Proposals or submission of Indirect Cost Rate information?
 
Indirect cost rate proposals or elections of other rate options must be submitted within 90 days of first receiving a State award.
 
For example, if the start date of the grant award from the State of Illinois is July 1st, the complete proposal is due no later than Thursday, September 29th.
After the Organization’s first negotiated indirect cost rate and depending on the Organization’s fiscal year-end, it is typical for Organizations or Grantees to re-submit or re-apply at various times throughout the year. This may even occur prior to the issuance of an award for FY 18
 
Grantees must then submit an indirect cost rate proposal within six (6) months after the end of their fiscal year on an annual basis.
 
Is every organization that receives an award from the State of Illinois required to elect an indirect cost rate option in the Centralized Indirect Cost rate System?
Yes, regardless of award or type of award, an organization must elect one of four options within the Centralized Indirect Cost rate System. In accordance with federal rules, each organization must make an election for charging indirect costs to grants:
·         If the entity has a negotiated federal indirect cost rate the state is required to honor the rate, some exceptions apply – federal program limitations and supplanting issues may pertain
·         Elect the 10% de minimis rate, if qualified             
·         Negotiate an indirect cost rate with the State of Illinois or if an LEA the rate is negotiated with Illinois State Board of Education (ISBE)
·         Elect not to charge indirect costs
I have yet to receive any funding from my State of Illinois grants, does my organization still have to elect an indirect cost rate option or submit an Indirect Cost Rate Proposal (ICRP) to the State of Illinois Centralized Indirect Cost Rate System
YES, As soon as an organization is issued an award the organization must elect an Indirect Cost Rate option in the Centralized Indirect Cost Rate System, regardless if funding has not yet begun. The organization has 90 days from the issuance of their first award to elect an option. In Subsequent years (FY 2018 and beyond), Organizations must then submit an indirect cost rate election within six (6) months after the end of their fiscal year on an annual basis.
 
Does my organization need to elect an indirect cost rate option even if all my awards follow a Federal indirect cost limitation or restriction?
Every organization must negotiate an indirect cost rate or if eligible elect the de minimis rate even if your program has cost limitation below a Negotiated Indirect Cost Rate Agreement (NICRA)  or the de minimis rate of 10% Modified Total Direct Costs (MTDC).
I cannot complete a full submission by the due date can I negotiate one later?
 
No, the deadline is set for 90 days after the issuance of an award. If an organization is unable to complete an Indirect Cost Rate Proposal (ICRP) by the deadline, we strongly encourage you to elect the de minimis if eligible; otherwise your organization will not be allowed to charge indirect costs to grants.  Under the federal and state guidance no extensions are allowed.

I negotiated a rate with a State of Illinois grant making agency in the past, do I have to negotiate a rate with the State of Illinois Centralized Indirect Cost Rate Unit if I only receive grants from the agency I negotiated the rate with?
Yes, rates must be negotiated annually through the centralized indirect cost rate systems.  The only exception is Local Education Agencies (LEA) with the Illinois State Board of Education.
I have approved cost allocation plan with DCEO, can I use the cost allocation plan for other grants in the state and therefore would not be required to negotiate a rate with the state of Illinois?
No, the cost allocation plan option plan is only available for DCEO’s WIOA program and will not be accepted for other grants.  This exception was granted for one year (FY 2017) only. 
In order to receive indirect cost reimbursement on other State of Illinois awards, a Negotiated Indirect Cost Rate Agreement (NICRA) is required.

 


 


Training Modules

 

The modules below are linked to a webinar and have been placed in chronological order:

 


 

Forms & Indirect Cost Rate Templates

 

For NFP receiving $10 million or more annually in direct federal funds utilizing the Simplified Allocation Method:
ICRP_NFP_Large_Simplified (Mac Compatible)
ICRP_NFP_Large_Simplified (PC Compatible)

Sample ICRP_NFP_Large_Simplified
 
For NFP receiving $10 million or more annually in direct federal funds utilizing the Direct Allocation Method:
ICRP_NFP_Large_Direct (Mac Compatible)
ICRP_NFP_Large_Direct (PC Compatible)
Sample ICRP_NFP_Large_Direct
 
For NFP receiving less than $10 million annually in direct federal funds utilizing the Simplified Allocation Method:
ICRP_NFP_Small_Simplified (Mac Compatible)
ICRP_NFP_Small_Simplified (PC Compatible)

Sample ICRP_NFP_Small_Simplified
 
For NFP receiving less than $10 million annually in direct federal funds utilizing the Direct Allocation Method:
ICRP_NFP_Small_Direct (Mac Compatible)
ICRP_NFP_Small_Direct (PC Compatible)
Sample ICRP_NFP_Small_Direct
 
For Government entity type utilizing the Simplified Allocation Method:
ICRP_GOV_Simplified (Mac Compatible)
ICRP_GOV_Simplified (PC Compatible)
Sample ICRP_GOV_Simplified 
 
For For-Profit entity type:
ICRP_ForProfit_Simplified (Mac Compatible)
ICRP_ForProfit_Simplified (PC Compatible)
Sample ICRP_ForProfit_Simplified
 
Modified Total Direct Costs (MTDC) spreadsheet to document MTDC for entities electing the 10% de minimis rate:
MTDC (Mac Compatible)
MTDC (PC Compatible)
Sample MTDC

 

Sample Cost Policy Statement