2 CFR 200.412 sets one requirement for organizations that receive federal grants and cooperative agreements. Applies when you build your application and budget, and to every cost you charge after award.
Treat each cost incurred for the same purpose in like circumstances consistently as either a direct or an indirect cost — never both — to avoid double-charging Federal awards; there is no universal direct/indirect rule, so consistency is the controlling test.
Budget contains both direct cost lines and an indirect cost recovery (negotiated rate or de minimis)
Upload the funding notice and your draft budget or narrative, and ask. Grantable answers from its compliance database of federal, agency and state rules, with citations.
There is no universal rule for classifying certain costs as direct or indirect costs. A cost may be direct for some specific service or function but indirect for the Federal award or other final cost objective. Therefore, each cost incurred for the same purpose in like circumstances must be treated consistently either as a direct or an indirect cost to avoid possible double-charging of Federal awards. Guidelines for determining direct and indirect costs charged to Federal awards are provided in this subpart.
Source: eCFR · checked Sep 17, 2026
Treat each cost incurred for the same purpose in like circumstances consistently as either a direct or an indirect cost — never both — to avoid double-charging Federal awards; there is no universal direct/indirect rule, so consistency is the controlling test.
Budget contains both direct cost lines and an indirect cost recovery (negotiated rate or de minimis).
Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.