Indirect Cost Rate Law and Legal Definition
According to 31 CFR 205.2 [Title 31 -- Money and Finance: Treasury; Subtitle B -- Regulations Relating to Money and Finance; Chapter II -- Fiscal Service, Department of the Treasury; Subchapter A -- Financial Management Service Part 205 -- Rules and Procedures for Efficient Federal-State Funds Transfers], indirect cost rate means “a formula that identifies the amount of indirect costs based on the amount of accrued direct costs. The applicable indirect cost rate shall be described in the Treasury-State agreement.”
