Using the restricted indirect cost rate.

§ 76.569 Using the restricted indirect cost rate. (a) Under the programs referenced in § 76.563, the maximum amount of indirect costs under a grant is determined by the following formula: Indirect costs = (Restricted indirect cost rate) × (Total direct costs of the grant minus capital outlays, subgrants, and other distorting or unallowable items as specified in the grantee's indirect cost rate agreement) (b) If a grantee uses a restricted indirect cost rate, the general management and fixed costs covered by that rate must be excluded by the grantee from the direct costs it charges to the grant. (Authority: 20 U.S.C. 1221e–3(a)(1), 2831(a), 2974(b), and 3474) [59 FR 59584, Nov. 17, 1994]