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Indirect cost pool allowability for an LLC subgrantee


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My LLC plans to apply as a major subgrantee in a DOS coag/grant (the mechanism has not been finalized). We have no staff, only 1099 contractors, so there are no fringe benefits to consider. As I am preparing the budget, can we include a 10% de minimus indirect pool? Or would it be better to solely use direct cost allocation for shared expenses? As this would be our only non-profit making project, are there best practices for cost allocation methodology?  

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  • 3 weeks later...

There is not enough info here. What costs are you planning to incur? How does the LLC currently charge those costs? What is going to change -- if anything -- because you receive a new project?

And, really, you have no W-2 employees? None? Not even the CEO or CFO?

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Need more information, but if I was a for-profit entity in this situation as I imagine it ("As this would be our only non-profit making project"), I would first make myself aware of the multitude of terms and conditions that are required to be flowed down by recipients of Federal awards to subrecipients through subawards under 2 CFR 200. 

I'd first read through the "Subrecipient vs. Contractor Checklist" and determine whether my entity's services are truly that of a recipient/subrecipient vs that of a contractor/subcontractor. If the latter, I'd push back on T&Cs with the prime recipient and price accordingly. If the former, like here_2_help stated, not enough info here.

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