Centralized Indirect Cost Rate System

State of Illinois Indirect Cost Rate Proposals and Elections

All State of Illinois grantees receiving awards from Illinois grant making agencies must enter the State of Illinois Centralized Indirect Cost Rate System via the Grantee Portal to substantiate its organizations’ election regarding indirect cost reimbursement. Grantees that wish to negotiate a rate with the State of Illinois will start their election process in the Grantee Portal and the case will then be sent to CARS to begin negotiation.

Entry to the State of Illinois Indirect Cost Rate System

Register Users: The Illinois Centralized Indirect Cost Rate System is located at: https://grants.illinois.gov/portal/

New Users: Entities who are not currently registered in the Grantee Portal need to create a username and password in order to access the Grantee Portal to complete the registration process. The Grantee Portal is located at https://grants.illinois.gov/portal/

All grantees must elect at least one of the following (4) options annually and complete the necessary requirements in the State of Illinois Indirect Cost Rate System.

1. Negotiate an indirect cost rate with the State of Illinois

This option requires an indirect cost rate election be made in the State of Illinois Centralized Indirect Cost System. The proposal and supporting documentation will be developed by the grantee and submitted through the CARS system.
A State of Illinois Negotiated Indirect Cost Rate Agreement (NICRA) will be accepted by all State of Illinois agencies for indirect cost rate reimbursement on State awards, provided the specific award is not subject to statutory restrictions, thresholds or ceilings that limit the indirect cost reimbursement amount. Specific indirect cost restrictions can be located within the Notice of Funding Opportunity (NOFO) for each award.
A State of Illinois (NICRA) can only be used for State awards and will not be accepted by federal agencies for use on direct federal awards.

2. Elect the de minimis rate

Once elected, the de minimis rate will remain in effect until such a time that the grantee/subrecipient decides to change their election.
Once elected, this rate may be used for indirect cost rate reimbursement on State awards, provided the specific award is not subject to statutory restrictions, thresholds or ceilings that limit the indirect cost reimbursement amount. Specific indirect cost restrictions can be located within the Notice of Funding Opportunity (NOFO) for each award.
The de minimis rate can be used indefinitely by a grantee until such a time the grantee chooses to negotiate an indirect cost rate, which the grantee may do so at any time. Effective November 12, 2020 once an indirect cost rate is negotiated the de minimis rate option will still be available to the grantee.
In accordance with the revisions to 2 CFR 200, effective October 1, 2024, the De Minimis rate has increased to up to 15% of Modified Total Direct Costs (MTDC) for awards executed on or after October 1, 2024. During the transition into the 2024 Uniform Guidance revisions, agencies should work closely with their grantee’s to clearly communicate requirements applicable to a given award.

3. Provide a copy of a current Federal Negotiated Indirect Cost Rate Agreement (NICRA)

This option is available to grantees that receive awards directly from a Federal awarding agency and have negotiated an indirect cost rate with its Federal cognizant agency for indirect costs.
The current Federal NICRA will be accepted by all State of Illinois agencies for indirect cost rate reimbursement on State awards, provided the specific award is not subject to statutory restrictions, thresholds or ceilings that limit the indirect cost reimbursement amount. Specific indirect cost restrictions can be located within the Notice of Funding Opportunity (NOFO) for each award.

4. Elect to decline any indirect cost rate

Once elected, the Waive (No Rate) will remain in effect until such a time that the grantee/subrecipient decides to change their election.
This “no rate” option certifies to all State of Illinois agencies that the grantee will not seek indirect cost reimbursement from any State of Illinois award.
Grantees that administer programs that are exempt from 2 CFR 200 Subpart E – Cost Principles may elect this option.

GATA Centralized Indirect Cost Rate User Manual

CARS System Training Manual

State of Illinois Indirect Cost Rate proposal and election deadlines

INITIAL SUBMISSION (Applies to all State of Illinois Grantees)

An indirect cost proposal or rate election must be initiated within the Centralized Indirect Cost Rate system accessed through the Grantee Portal upon acceptance of the UGA. The indirect cost proposal or rate must be completed no later than three months after the effective date of the award.

ANNUAL RENEWAL

Uniform Guidance (2CFR200) requires annual submission of an indirect cost proposal or rate election. The Centralized Indirect Cost Rate System accessed via the Grantee Portal will be used for annual renewals. Annual submissions must be received within six months after the grantee’s fiscal year end.

Waive and De Minimis elections will not require annual submissions. These elections will remain in effect in perpetuity until the grantee/subrecipient change their election type.

Centralized Indirect Cost Rate System Guidelines

Illinois received permission from the Federal Government to centralize the negotiation of indirect cost rates.
This allows grantees to negotiate one rate if they receive grants from multiple State of Illinois agencies
All State of Illinois agencies must accept the centralized negotiated rate unless there are federal program limitations, cap requirements or supplanting issues.
A grantee may volunteer to accept a lower indirect cost rate, but state agencies are not allowed to force or coerce a grantee to take a lower rate
All grantees are required to make the indirect cost rate elections in the centralized system