INDIRECT COST POLICY

Indirect Cost Policy

Indirect Cost Policy for Federal, State, and Private Grant Awards

Effective Date: October 26, 2026

Purpose

Big Bend AFTER Reentry Coalition is committed to responsible stewardship of grant funds while maintaining the administrative infrastructure necessary to deliver high-quality reentry services. This policy establishes how the Coalition allocates and recovers indirect costs associated with administering grants and contracts.

Organizational Mission

Big Bend AFTER Reentry Coalition works collaboratively with community partners to reduce recidivism, improve public safety, and increase opportunities for successful reintegration by providing coordinated reentry services, resource navigation, employment support, housing assistance, mentoring, behavioral health referrals, and other evidence-based services for justice-involved individuals and their families.

Indirect Costs

Indirect costs are expenses incurred for common or shared organizational objectives that cannot be readily identified with a single grant or program but are necessary for the overall operation of the organization.

Examples include:

  • Executive leadership and organizational management
  • Financial management and accounting
  • Human resources and payroll
  • Grant administration and compliance
  • Office rent and utilities
  • Technology infrastructure and software
  • Insurance
  • Audit and legal services
  • Office equipment and administrative supplies

Indirect Cost Rate

Big Bend AFTER Reentry Coalition does not currently maintain a federally negotiated indirect cost rate agreement (NICRA). Therefore, when permitted by the funding opportunity, the Coalition elects to apply the 15% de minimis indirect cost rate on Modified Total Direct Costs (MTDC) in accordance with 2 CFR §200.414(f).

The Coalition will apply this rate consistently across all eligible federal awards until such time as a federally negotiated indirect cost rate is established.

Funding Source Requirements

The Coalition will comply with all requirements established by each funding agency.

  • If a grant permits the de minimis indirect cost rate, the Coalition will request reimbursement accordingly.
  • If a funding source limits or prohibits indirect costs, the Coalition will comply with those restrictions.
  • Any unrecovered indirect costs will be absorbed by the organization or treated as cost sharing only when expressly authorized by the funding agency.

Fiscal Accountability

Big Bend AFTER Reentry Coalition maintains financial management systems designed to:

  • Ensure grant funds are used only for allowable, allocable, and reasonable costs.
  • Maintain separation of direct and indirect expenses.
  • Comply with Generally Accepted Accounting Principles (GAAP), Uniform Guidance (2 CFR Part 200), and all applicable federal and state grant requirements.
  • Maintain documentation supporting all expenditures and financial reporting.

Board Review

This policy shall be reviewed periodically by the Board of Directors and updated as federal regulations or organizational practices change.

Questions regarding this policy may be directed to:

Big Bend AFTER Reentry Coalition
Email: info@bigbendreentry.org
Phone: 850-270-3302