Administrative or Indirect Rates Charged by Contractors

Administrative rates are defined as those costs associated with the management and oversight of an organization's activities. The rates established by this policy are considered reasonable rates; thus, rates charged in compliance with these rates do not require supporting documentation.

Administrative rates charged by contractors may not exceed eight (8) percent of total contract costs billed except as set forth below.

1. Administrative rates charged by a university system may not exceed ten (10) percent of total contract costs billed.

2. Administrative rates that are charged under a contract with a university system where the parties jointly drafted the grant application shall be the administrative rate submitted in the grant application.

Administrative or Indirect Rates Charged by Sub-grantees

Administrative rates are defined as those costs associated with the management and oversight of an organization's activities. Under the Library Services and Technology Act (LSTA) grant from Institute of Museums and Library Services (IMLS) to Missouri State Library of the Office of the Secretary of State, no administrative or indirect costs are allowed to sub-grantees for grant purposes. Only direct costs are allowable through LSTA grant sub-awards.