Item 35 - FY 2022 Emergency Management Performance Grant

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19 M&A staff with M&A activities, and auditing costs related to the grant award to the extent required or permitted by statute or 2 C.F.R. Part 200. Characteristics of M&A expenses can include the following: 1) direct costs that are incurred to administer a particular Federal award; 2) identifiable and unique to each Federal award; 3) charged based on the activity performed for that particular Federal award; and 4) not duplicative of the same costs that are included in the approved Indirect Cost Rate Agreement, if applicable. Procedures for Establishing Indirect Cost Rates The requirements and procedures for establishing indirect cost rates are the same for all the preparedness programs outlined in the Preparedness Grants Manual. The process for establishing the indirect cost rate varies based on the type of entity and the amount of funding they receive: •If the entity is a non-governmental entity, and is a subrecipient, indirect cost rate procedures are outlined in 2 CFR 200.332(a)(4). These types of entities may either use the de minimis rate or negotiate a rate with the pass-through entity. •If the subrecipient is a state or local governmental entity, indirect cost rate procedures are established in 2 CFR 200, Appendix VII. o Per Paragraph D.1.b. of Appendix VII, state or local governmental entities receiving grant funds must develop an indirect cost rate proposal. ▪If the state or local entity receives more than $35 million in grant funding, the proposal must be approved by the cognizant agency. ▪If a state or local entity receives $35 million or less in grant funding, they have to develop an indirect cost rate proposal, but that indirect cost rate proposal does not need to be approved by the cognizant agency. •If a state or local governmental entity wants to use the de minimis rate (instead of developing an indirect cost rate proposal), they can request a case-by-case exception from FEMA (per 2 CFR 200.102(b)).