Indirect Cost Calculator
Indirect costs are incurred for the benefit of multiple programs, functions, or other cost objectives and therefore cannot be identified readily and specifically with a particular program or other cost objective. Indirect costs typically support administrative overhead functions such as accounting, payroll services, purchasing, facilities management, building utilities, etc.
Costs to the food service account must be consistently treated as direct or indirect in accordance with Federal cost principles. It is unallowable to bill the non-profit food service account for indirect costs that were paid from the general fund in prior years unless an agreement exists to show that the district had been “loaning” the non-profit food service account funds to cover the indirect costs in one or more prior years.
Two types of indirect cost rates are used with programs funded through the New York State Education Department; the restricted rate and non-restricted rate. The non-restricted indirect cost rate is used for Child Nutrition Programs as reimbursements for child nutrition programs are meant to supplant (not supplement) program costs.
SED's Grants Finance office notifies public SFAs and BOCES of their non-restricted indirect cost rate annually. SED does not have a negotiated non-restricted indirect cost rate for non-public SFAs and Charter schools; therefore, in accordance with 2 CFR 200.414 (f), these entities can elect to charge a de minimis rate of 10% of modified total direct costs (MTDC). Per Federal regulation changes, the de minimis rate increases to 15% beginning October 1, 2024; however, for the current 23-24 fiscal year reporting period, 10% must be used.
If indirect costs are charged to the non-profit food service account, the amount must be included as part of each SFAs financial reporting. SED has created an Indirect Cost Calculator to help SFAs calculate their indirect costs. Please note, this calculator was previously called the 10% Indirect Cost Calculator; however, it has been updated to allow Public SFAs to enter their negotiated unrestricted indirect cost rate.