Updated Bulletin 5 – Policy for Grant Issuance and Monitoring

Please take note! The Agency of Administration has updated Bulletin 5, the Policy for Grant Issuance and Monitoring:

Many of the updates align the policy with recent changes to OMB Uniform Guidance which include the de minimis increasing to 15% this October.

Thanks to our collective advocacy, the updates for State grants provide new and stronger language around indirect rates:

“State funded awards may use approved indirect cost rates. If a current approved Federally negotiated indirect cost rate agreement (NICRA) exists for an entity, that rate should be used when applying indirect cost rates to state funded awards. If an entity does not have a NICRA and an indirect rate would be used, the agency/department should use a rate negotiated between the pass-through entity, or the current Federal de minimis rate. These indirect costs must be allowable on the state-funded award and have been included in the grant agreement and in the grant agreement budget.”

    In brief, when State funds allow for an indirect rate:

    • If the organization has a NICRA, that rate should be applied
    • If the organization does not have a NICRA, the agency/department should

    They have also updated the Bulletin 5 Procedures 1-3, the Bulletin 5 Granting Plan Supplement, and Finance and Management policies 1, 2, 8, and 9. Additionally, a new policy Finance and Management Policy #11 was written and was published alongside the bulletin to address Indirect Cost Rate Review and Approval processes throughout the state.

    These documents can be found at the following two locations: 

    Please review these updates and reach out with any questions or concerns. Going forward, we would like to hear from you about the impact of these changes and how they are being implemented. If you try to negotiate a State indirect rate – what was the outcome? Please email [email protected] to share your experience.