Calculating Indirect using MTDC

RMUG – 12/02/24

What is MTDC

• MTDC stands for Modified Total Direct Cost
• It is a Federally negotiated rate, used to calculate Indirect for awards and subawards
• Guidelines - 2 CFR 200.68 – Revised
• Current Cabrillo Rate $26.90% for on campus
• We are in process of negotiations for a new rate
• For subawards enacted prior to October 1, 2024, the max threshold if $25,000 of Direct Costs
• For subawards enacted or amended effective October 1 2024, the maximum threshold is $50,000 of Direct Costs
• NOTE: Some grants will have their own specific Indirect Rate (i.e. 8%, 10%), and specific terms for the expenditures (i.e. salaries and benefits only, or no student salary and benefits)

​

​

What is included in Indirect calculation when using MTDC

• Items Includes when calculating Indirect using the MTDC
• Salaries
• Benefits
• Materials
• Supplies
• Services
• Travel
• Up to $50,000 of a Subaward – for subawards received or amended after October 1, 2024

​

• Items Excluded when calculating Indirect using the MTDC
• Equipment
• Capital Expenditures
• Rent Costs
• Tuition remission
• Student participant support
• Anything in excess of $50,000 of the Subaward, for subawards issued or amended after October 1, 2024

How to calculate indirect for budgeting

How to calculate indirect for budgeting

How to calculate Quarterly Indirect – to post

Closing grants and closing 2^nd quarter

December - January timelines

What will help with closing

• All transactions posted and/or accrued (as allowed) including
• Salaries and benefits
• Indirect costs – if allowed

​

• All funds spent down, as required
• Program Administrator should work with your FSS and Sr. Accountant for a plan to spend down the funds
• If not able to spend down all funds, find out if the funds need to be returned, by what date, and how to return
• If funds need to be returned, a liability needs to be set up

​

• Prepare a request to set up Accounts Receivable – if the revenue is received as a reimbursement, and the grantor needs to be invoiced

​

​

Estimated timelines�

• Regular Payroll for Classified and Faculty will post by December 19^th

​

• You can start working on closing right after that
• Prepare chargebacks
• Prepare any clean-up JEs
• Prepare JE for Indirect
• Prepare BTs for budget alignment

​

• If we go to SaaS, we will not be able to do any chargeback posting for PT, Hourly, and Students until the week of January 13th to January 17th
• If you have reports that are due on or before January 17th, please work with your FSS and Sr. Accountant on a plan
• If we don’t go to SaaS in January, we will publish a timeline for chargebacks and closings

​

• The tentative date for the PT and Student payroll to print is December 23rd.

​

Questions