Can an Employee be Paid from an Indirect Rate and Directly?

m

Cost Allocation, Financial, Indirect Costs, Uniform Guidance



Executive Director, Finance Director



2014

This FAQ addresses the question of whether employers can pay an employee from both the indirect rate and directly from the funding source. Because of the complexity of this issue, CAAs may find it useful to discuss its position with its independent auditor–and possibly fiscal staff at the government funding source(s) involved, if their fiscal monitoring is particularly thorough–to be sure that they are in agreement.

Related Resources:

OMB Proposes Significant Changes to the Uniform Guidance

On Friday, May 29, 2026, the federal Office of Management and Budget (OMB) published proposed revisions to the framework governing federal grants management and the use of federal grant funds. The proposal covers Title 2 of the Code of Federal Regulations, including 2 CFR...

Departmental Appeals Board Article Archive

The Department of Health and Human Services (HHS) is the largest grant-making agency in the federal government. HHS’s Departmental Appeals Board (DAB) is responsible for providing dispute resolution services for HHS grants and programs. Grantees can appeal determinations...

Almost on the Same Page: HHS’s Adoption of the Uniform Guidance

Recipients and subrecipients of federal funding from the U.S. Department of Health and Human Services (HHS) and other federal agencies can soon expect greater uniformity in the rules that govern the administration and use of those funds. HHS published an Interim Final Rule...