State of Illinois Indirect Cost Rate Proposals and Elections
All State of Illinois grantees receiving awards from Illinois grant making agencies must enter the State of Illinois Centralized Indirect Cost Rate System via the Grantee Portal to substantiate its organizations’ election regarding indirect cost reimbursement. Grantees that wish to negotiate a rate with the State of Illinois will start their election process in the Grantee Portal and the case will then be sent to CARS to begin negotiation.
Entry to the State of Illinois Indirect Cost Rate System
Registered Users: The Illinois Centralized Indirect Cost Rate System is located at
https://grants.illinois.gov/portal/
New Users:
Entities who are not currently registered in the Grantee Portal need to create a username and password in order to access the Grantee Portal to complete the registration process. The Grantee Portal is located at https://grants.illinois.gov/portal/
All grantees must elect at least one of the following (4) options annually and complete the necessary requirements in the State of Illinois Indirect Cost Rate System.
1. Negotiate an indirect cost rate with the State of Illinois
· This option requires an indirect cost rate election be made in the State of Illinois Centralized Indirect Cost System. The proposal and supporting documentation will be developed by the grantee and submitted through the CARS system.
· A State of Illinois Negotiated Indirect Cost Rate Agreement (NICRA) will be accepted by all State of Illinois agencies for indirect cost rate reimbursement on State awards, provided the specific award is not subject to statutory restrictions, thresholds or ceilings that limit the indirect cost reimbursement amount. Specific indirect cost restrictions can be located within the Notice of Funding Opportunity (NOFO) for each award.
· A State of Illinois (NICRA) can only be used for State awards and will not be accepted by federal agencies for use on direct federal awards.
2. Elect the de minimis rate - 10% of modified total direct costs (MTDC)
· Once elected, the de minimis rate of 10% (MTDC) will remain in effect until such a time that the grantee/subrecipient decides to change their election.
· Once elected, this rate may be used for indirect cost rate reimbursement on State awards, provided the specific award is not subject to statutory restrictions, thresholds or ceilings that limit the indirect cost reimbursement amount. Specific indirect cost restrictions can be located within the Notice of Funding Opportunity (NOFO) for each award.
· The de minimis rate of 10% (MTDC) can be used indefinitely by a grantee until such a time the grantee chooses to negotiate an indirect cost rate, which the grantee may do so at any time. Effective November 12, 2020 once an indirect cost rate is negotiated the de minimis rate of 10% (MTDC) option will still be available to the grantee.
3. Provide a copy of a current Federal Negotiated Indirect Cost Rate Agreement (NICRA)
· This option is available to grantees that receive awards directly from a Federal awarding agency and have negotiated an indirect cost rate with its Federal cognizant agency for indirect costs.
· The current Federal NICRA will be accepted by all State of Illinois agencies for indirect cost rate reimbursement on State awards, provided the specific award is not subject to statutory restrictions, thresholds or ceilings that limit the indirect cost reimbursement amount. Specific indirect cost restrictions can be located within the Notice of Funding Opportunity (NOFO) for each award.
4. Elect to decline any indirect cost rate
· Once elected, the Waive (No Rate) will remain in effect until such a time that the grantee/subrecipient decides to change their election.
· This “no rate” option certifies to all State of Illinois agencies that the grantee will not seek indirect cost reimbursement from any State of Illinois award.
· Grantees that administer programs that are exempt from 2 CFR 200 Subpart E – Cost Principles may elect this option.
GATA Centralized Indirect Cost Rate User Manual
CARS System Training Manual
State of Illinois Indirect Cost Rate proposal and election deadlines
INITIAL SUBMISSION (Applies to all State of Illinois Grantees)
An indirect cost proposal or rate election must be initiated within the Centralized Indirect Cost Rate system accessed through the Grantee Portal upon
acceptance of the UGA. The indirect cost proposal or rate must be completed no later than three months after the effective date of the award.
ANNUAL RENEWAL
Uniform Guidance (2CFR200) requires
annual submission of an indirect cost proposal or rate election. The Centralized Indirect Cost Rate System accessed via the Grantee Portal will be used for annual renewals. Annual submissions must be received within six months after the grantee’s fiscal year end.
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Waive and De Minimis elections will not require annual submissions. These elections will remain in effect in perpetuity until the grantee/subrecipient change their election type.
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 March 2021
FAQs - Crowe Activity Review System (CARS)
What are the due dates for Indirect Cost Rate Proposals or submission of Indirect Cost Rate information?
If your organization has not previously established an indirect cost rate in the State of Illinois centralized indirect cost rate system then 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.
Grantees must then submit their subsequent fiscal year indirect cost rate proposal within six (6) months after the end of their fiscal yeat 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 eligible
· 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 can be found by navigating to Grant Accountability and Transparency Act (GATA) Webinars:
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Indirect Cost Rate "How To" Webinar
- Module 5 Cost Principles – Basic Considerations
- Module 7 – Indirect Cost Rate Election Requirements
- Budget Template and Negotiated Indirect Cost Rate Agreement Overview
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Module 6 Cost Principles – Selected Items of Cost
F&A Indirect Cost Rate Proposal Template:
Standard Indirect Cost Rate Proposal Template:
Non-Profit Federal Refusal to Negotiate Form:
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
