Iowa HSB642 establishes a uniform limit on indirect costs charged to state-funded grants, setting a cap at 5% of the total grant amount.

Iowa HSB642 aims to create a uniform statewide limit on indirect costs charged to state-funded grants. The bill sets a cap at 5% of the total grant amount and prohibits departments or establishments from approving budgets or reimbursements that exceed this limit. It also mandates that grantees maintain records to substantiate indirect costs and ensures that indirect costs are not reclassified as direct costs. The bill requires departments or establishments to implement controls to prevent exceeding the cap and may require corrective action plans for non-compliant grantees.

Iowa HSB642 establishes a uniform limit on indirect costs charged to state-funded grants, setting a cap at 5% of the total grant amount.

Iowa HSB642 aims to create a uniform statewide limit on indirect costs charged to state-funded grants. The bill sets a cap at 5% of the total grant amount and prohibits departments or establishments from approving budgets or reimbursements that exceed this limit. It also mandates that grantees maintain records to substantiate indirect costs and ensures that indirect costs are not reclassified as direct costs. The bill requires departments or establishments to implement controls to prevent exceeding the cap and may require corrective action plans for non-compliant grantees.