Budget Proposal Development Tools

Indirect Cost Rate (IDC)

This is the rate, expressed as a percentage of a base amount, established by negotiation with the cognizant federal agency on the basis of the institution's projected costs for the year and distributed as prescribed in OMB Circular A-21. At PCC, indirect costs is at 40% applied to the modified total direct cost (MTDC) base.

In determining your program’s IDC cost and ultimately your program’s TC, you’ll first need to establish two other types of cost calculations to achieve the appropriate IDC calculation and TC.  These are:

• Total Direct Cost (TDC)  - are all costs associated in conducting the program (excluding match).  You can derive this number by adding all of the costs you’ve listed in your budget.  This gives you your programs TDC.

• Modified Total Direct Cost (MTDC) – are your program costs, excluding those that are considered exempt from your IDC rate application which are:  Equipment, Capital Expenditures, Charges for Patient Care, Tuition Remission, Rental Costs for Off-Site Facilities, Scholarships and Fellowships and the portion of Sub-Grants and Sub-Agreement in excess of $25,000.  You can derive this number by deducting those IDC exempt activities that are listed in your budget from your TDC.  This gives you your program’s MTDC.

• Indirect Cost (IDC) – is the College’s Federally negotiated and approved Indirect Cost Rate (IDC) rate of 40%.  <<Federal Certificate PDF File>>.  You can derive this number by multiplying the 40% IDC rate to your MTDC.  This gives you your program’s IDC cost.

• Total Cost (TC) – is your program’s total cost.  You can derive this number by adding your TDC with IDC.  This gives you your programs TC.

Personnel/Labor Cost Development

The following categories should be included in developing your personnel/labor budget

Fringe Benefits

• Job Classification & Salary Rates

• Projected Accrued Vacation Cost at end of Grant Period