34 C.F.R. §§ 75.530–75.562

§75.530. General cost principles.

34 C.F.R. § 75.530

The general principles to be used in determining costs applicable to grants and cost-type contracts under grants are specified at 2 CFR part 200, subpart E—Cost Principles.

Cross Reference: See 2 CFR part 200, subpart D—Post Federal Award Requirements.

Notes, amendments, and revision history

Amendments

[79 FR 76092, Dec. 19, 2014]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[79 FR 76092, Dec. 19, 2014]

§75.531. Limit on total cost of a project.

34 C.F.R. § 75.531

A grantee shall ensure that the total cost to the Federal Government is not more than the amount stated in the notification of grant award.

Notes, amendments, and revision history

Amendments

[45 FR 22497, Apr. 3, 1980, as amended at 89 FR 70329, Aug. 29, 2024]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[45 FR 22497, Apr. 3, 1980, as amended at 89 FR 70329, Aug. 29, 2024]

§75.532. Use of funds for religion prohibited.

34 C.F.R. § 75.532

(a)

No grantee may use its grant to pay for any of the following:

(1)

Religious worship, instruction, or proselytization.

(2)

Equipment or supplies to be used for any of the activities specified in paragraph (a)(1) of this section.

(b)

[Reserved]

Notes, amendments, and revision history

Amendments

[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, as amended at 69 FR 31711, June 4, 2004]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, as amended at 69 FR 31711, June 4, 2004]

§75.533. Acquisition of real property; construction.

34 C.F.R. § 75.533

No grantee may use its grant for acquisition of real property or for construction unless specifically permitted by the applicable statutes and regulations.

Notes, amendments, and revision history

Amendments

[45 FR 22497, Apr. 3, 1980, as amended at 89 FR 70329, Aug. 29, 2024]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[45 FR 22497, Apr. 3, 1980, as amended at 89 FR 70329, Aug. 29, 2024]

§75.534. Training grants—automatic increases for additional dependents.

34 C.F.R. § 75.534

The Secretary may increase a grant to cover the cost of additional dependents not specified in the notice of award under § 75.235 if—

(a)

Allowances for dependents are authorized by applicable statutes and regulations and are allowable under the grant; and

(b)

Appropriations are available to cover the cost.

Notes, amendments, and revision history

Amendments

[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, as amended at 57 FR 30339, July 8, 1992; 89 FR 70329, Aug. 29, 2024]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[45 FR 22497, Apr. 3, 1980. Redesignated at 45 FR 77368, Nov. 21, 1980, as amended at 57 FR 30339, July 8, 1992; 89 FR 70329, Aug. 29, 2024]

§75.560. General indirect cost rates and cost allocation plans; exceptions.

34 C.F.R. § 75.560

(a)

The differences between direct and indirect costs and the principles for determining the general indirect cost rate that a grantee may use for grants under most programs are specified in the cost principles for—

(1)

All grantees, other than hospitals and commercial (for-profit) organizations, at 2 CFR part 200, subpart E;

(2)

Hospitals, at 45 CFR part 75, appendix XI; and

(3)

Commercial (for-profit) organizations, at 48 CFR part 31.

(b)

Except as specified in paragraph (c) of this section, a grantee must have obtained a current indirect cost rate agreement or approved cost allocation plan from its cognizant agency, to charge indirect costs to a grant. To obtain a negotiated indirect cost rate agreement or approved cost allocation plan, a grantee must submit an indirect cost rate proposal or cost allocation plan to its cognizant agency within 90 days after the date on which the Department issues the Grant Award Notification (GAN).

(c)

A grantee that meets the requirements in 2 CFR 200.414(f) may elect to charge the de minimis rate of modified total direct costs (MTDC) specified in that provision, which may be used indefinitely. The de minimis rate may not be used on programs that have statutory or regulatory restrictions on the indirect cost rate. No documentation is required to justify the de minimis rate.

(1)

If the grantee has established a threshold for equipment that is lower than the amount specified in the Uniform Guidance, the grantee must use that threshold to exclude equipment from the MTDC base.

(2)

For purposes of the MTDC base and application of the de minimis rate, MTDC includes up to the amount specified in the definition of MTDC in the Uniform Guidance of each subaward, each year.

(d)

If a grantee is required to, but does not, have a federally recognized indirect cost rate agreement or approved cost allocation plan, the Secretary may permit the grantee to charge its grant for indirect costs at a temporary rate of 10 percent of budgeted direct salaries and wages.

(e)

(1)

If a grantee fails to submit an indirect cost rate proposal or cost allocation plan to its cognizant agency within the required 90 days, the grantee may not charge indirect costs to its grant from the end of the 90-day period until it obtains a federally recognized indirect cost rate agreement applicable to the grant.

(2)

If the Secretary determines that exceptional circumstances warrant continuation of a temporary indirect cost rate, the Secretary may authorize the grantee to continue charging indirect costs to its grant at the temporary rate specified in paragraph (d) of this section even though the grantee has not submitted its indirect cost rate proposal within the 90-day period.

(3)

Once a grantee obtains a federally recognized indirect cost rate that is applicable to the affected grant, the grantee may use that indirect cost rate to claim indirect cost reimbursement for expenditures made on or after the date on which the grantee submitted its indirect cost proposal to its cognizant agency or the start of the project period, whichever is later. However, this authority is subject to the following limitations:

(i)

The total amount of funds recovered by the grantee under the federally recognized indirect cost rate is reduced by the amount of indirect costs previously recovered under the temporary indirect cost rate specified in paragraph (d) of this section.

(ii)

The grantee must obtain prior approval from the Secretary to shift direct costs to indirect costs in order to recover indirect costs at a higher negotiated indirect cost rate.

(iii)

The grantee may not request additional funds to recover indirect costs that it cannot recover by shifting direct costs to indirect costs.

(f)

The Secretary accepts a current indirect cost rate and cost allocation plan approved by a grantee's cognizant agency but may establish a restricted indirect cost rate or cost allocation plan compliant with 34 CFR 76.564 through 76.569 to satisfy the statutory requirements of certain programs administered by the Department.

Notes, amendments, and revision history

Amendments

[89 FR 70329, Aug. 29, 2024]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[89 FR 70329, Aug. 29, 2024]

§75.561. Approval of indirect cost rates and cost allocation plans.

34 C.F.R. § 75.561

(a)

If the Department of Education is the cognizant agency, the Secretary approves an indirect cost rate or cost allocation plan for a grantee that is eligible and does not elect a de minimis rate, and is not a local educational agency. For the purposes of this section, the term “local educational agency” does not include a State agency.

(b)

Each State educational agency, on the basis of a plan approved by the Secretary, shall approve an indirect cost rate for each local educational agency that requests it to do so.

(c)

The Secretary generally approves indirect cost rate agreements annually. Indirect cost rate agreements may be approved for periods longer than a year if the Secretary determines that rates will be sufficiently stable to justify a longer rate period.

Notes, amendments, and revision history

Amendments

[59 FR 59583, Nov. 17, 1994, as amended at 89 FR 70330, Aug. 29, 2024]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[59 FR 59583, Nov. 17, 1994, as amended at 89 FR 70330, Aug. 29, 2024]

§75.562. Indirect cost rates for educational training projects; exceptions.

34 C.F.R. § 75.562

(a)

Educational training grants provide funds for training or other educational services. Examples of the work supported by training grants are summer institutes, training programs for selected participants, the introduction of new or expanded courses, and similar instructional undertakings that are separately budgeted and accounted for by the sponsoring institution. These grants do not usually support activities involving research, development, and dissemination of new educational materials and methods. Training grants largely implement previously developed materials and methods and require no significant adaptation of techniques or instructional services to fit different circumstances.

(b)

The Secretary uses the definition in paragraph (a) of this section to determine which grants are educational training grants.

(c)

(1)

Indirect cost reimbursement on a training grant is limited to the lesser of the recipient's approved indirect cost rate, or 8 percent of the modified total direct cost (MTDC) base. MTDC is defined in 2 CFR 200.1.

(2)

If the grantee does not have a federally recognized indirect cost rate agreement on the date on which the training grant is awarded, the grantee may elect to use the temporary indirect cost rate authorized under § 75.560(d)(3) or a rate of 8 percent of the MTDC base. The de minimis rate may not be used on educational training programs.

(i)

If the grantee has established a threshold for equipment that is lower than the amount specified in the Uniform Guidance, the grantee must use that threshold to exclude equipment from the MTDC base.

(ii)

For purposes of the MTDC base and application of the 8 percent rate, MTDC includes up to the amount specified in the definition of MTDC in the Uniform Guidance of each subaward, each year.

(3)

The 8 percent indirect cost rate reimbursement limit specified in paragraph (c)(1) of this section also applies when subrecipients issue subawards that fund training, as determined by the Secretary under paragraph (b) of this section.

(4)

The 8 percent limit does not apply to agencies of Indian Tribal governments, local governments, and States as defined in 2 CFR 200.1.

(5)

Indirect costs in excess of the 8 percent limit may not be charged directly, used to satisfy matching or cost-sharing requirements, or charged to another Federal award.

(d)

A grantee using the training rate of 8 percent is required to maintain documentation to justify the 8 percent rate.

Notes, amendments, and revision history

Amendments

[89 FR 70330, Aug. 29, 2024]

Authority

Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted. Section 75.263 also issued under 2 CFR 200.308(e)(1). Section 75.617 also issued under 31 U.S.C. 3504, 3505. Section 75.740 also issued under 20 U.S.C. 1232g and 1232h.

Source

Source: 45 FR 22497, Apr. 3, 1980, unless otherwise noted. Redesignated at 45 FR 77368, Nov. 21, 1980.

Amendments

[89 FR 70330, Aug. 29, 2024]