Arizona Office of the Governor – Indirect Cost Rates

The Arizona Office of the Governor operates federal grant programs and desired to recover indirect costs spent in support of those programs. To accomplish this, the Office of the Governor is required to prepare an indirect cost rate proposal and receive federal approval of their indirect cost rate.

MGT gathered financial and operational information about the Office of the Governor. Using this information, and relying upon the 2 CFR Part 200 federal costing regulations, MGT classified all costs as indirect, direct, and unallowable and prepared a federally compliant indirect cost rate proposal. The indirect cost rate proposal was submitted to the U.S. Department of Justice for review and approval. We successfully negotiated the indirect cost rate proposal with the U.S. Department of Justice and received approval of the indirect cost rate in the form of a negotiated indirect rate agreement. Using the approved indirect cost rate, the Office of the Governor is able to claim indirect costs associated with the $11 million of federal grant programs it operates annually.