Iowa SSB3074 sets a uniform cap on indirect costs for state-funded grants at 5% of the total grant amount.

Iowa SSB3074 establishes a statewide limit on indirect costs charged to state-funded grants, setting the cap at 5% of the total grant amount. The bill mandates that grant budgets must clearly separate indirect and direct costs, with a narrative explaining the basis for indirect cost calculations. It prohibits departments or establishments from approving budgets or reimbursements that exceed this cap unless expressly authorized by law. Grantees are barred from reclassifying indirect costs as direct costs or charging indirect costs on top of direct costs that already include indirect costs.

Iowa SSB3074 sets a uniform cap on indirect costs for state-funded grants at 5% of the total grant amount.

Iowa SSB3074 establishes a statewide limit on indirect costs charged to state-funded grants, setting the cap at 5% of the total grant amount. The bill mandates that grant budgets must clearly separate indirect and direct costs, with a narrative explaining the basis for indirect cost calculations. It prohibits departments or establishments from approving budgets or reimbursements that exceed this cap unless expressly authorized by law. Grantees are barred from reclassifying indirect costs as direct costs or charging indirect costs on top of direct costs that already include indirect costs.