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Grants 101


Indirect cost rate: costs of an organization that cannot readily be assigned to a particular project, but are necessary to the operation of the organization and the performance of the project. The cost of operating and maintaining facilities, depreciation, and administrative salaries are examples of the types of costs that are usually treated as indirect. To be reimbursed for indirect costs, you must first establish an appropriate indirect cost rate. To do this, prepare an indirect cost rate proposal and submit it to the cognizant federal agency. The cognizant federal agency is generally determined based on the preponderance of federal dollars you receive. Instructions on how to negotiate an indirect cost rate are available on OJP’s Funding Resources page.

Payment programs: these programs provide funding to participating jurisdictions for designated purposes but do not involve post-award activities. The State Criminal Alien Assistance Program (SCAAP) and Patrick Leahy Bulletproof Vest Partnership (BVP) Program are examples of such programs.

Peer review: Peer review is a process that uses non-federal independent evaluators and/or in-house or other federal agency personnel who are subject matter experts to assess the merits of an application or concept paper for federal funding.

State administering agency: Many OJP formula grants are awarded directly to state governments, which then set priorities and allocate funds within that state. A map with links to these agencies is available on the OJP Web site.

Supplanting: a state or unit of local government reduces state or local funds for an activity specifically because federal funds are available (or expected to be available) to fund that same activity. When supplanting is not permitted, federal funds must be used to supplement existing state or local funds for program activities and may not replace state or local funds that have been appropriated or allocated for the same purpose. Additionally, federal funding may not replace state or local funding that is required by law. If a question of supplanting arises, the applicant or grantee will be required to substantiate that the reduction in non-federal resources occurred for reasons other than the receipt or expected receipt of federal funds.

Date Created: January 21, 2020