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The MTDC (Modified Total Direct Costs) feature in Dash360 allows you to apply indirect costs only to a defined cap (e.g. $50,000) on sub-awards, in line with federal guidance. This ensures indirects are applied correctly without manual adjustments. Only Admin’s can enable and configure this feature. By default, the MTDC feature is off. Follow the steps below to enable and configure it.
  1. Enable the MTDC Feature:
    1. Go to the Admin Module -> select Projects -> click on Registry.
    2. From the registry set attached to your project, use the Name field search bar to find MTDC.
    3. Two settings will appear:
      1. MTDC Show - Turn this ON (this is the main feature flag).
      2. MTDC Frequency - Choose how often the MTDC cap should be reset:
        1. Once -> Cap applies only once for the life of the project.
        2. Yearly -> Cap resets at the start of each fiscal year.
    4. Click Save and Close.
TIP: Most institutions set Frequency to Yearly, so the $50,000 cap resets annually. Additional Notes from Practice: You may need to use the process wheel to recalculate the project after enabling MTDC. You will know the project needs recalculating if the process wheel is orange.
  1. Access the MTDC Tab:
    1. In the Admin Module, go to Projects.
    2. Open your project and click Edit Project (Pencil Icon).
    3. A new MTDC tab will now appear at the top.
    4. Open the MTDC tab to configure your project’s MTDC rules.
  2. Configure MTDC Settings: Inside the MTDC tab, you will set three options.
    1. Cap Amount:
      1. Enter the MTDC cap (commonly $50,000).
      2. This defines how much of each sub-award counts towards indirects.
    2. Cap Resource Results:
      1. Select the resource results reviewed during the calculation to determine if MTDC and indirects should apply.
      2. Example: Choose Direct and Escalation.
    3. Indirect Resource Results:
      1. Select which resource results will have indirects applied (e.g. Indirect).
      2. If totals exceed the cap, indirects are automatically set to zero after the threshold.
      3. If you have multiple resource results, you can select several and Dash360 will account for them.
    4. Click Save to lock in your settings.
  3. Apply the MTDC at the Contract Level (Optional): MTDC can be applied to multiple resource assignments at once by creating a contract.
    1. In the MTDC tab, click Create Contract.
    2. Enter a Contract Name.
    3. Choose a Frequency (Once or Yearly).
      1. By default, it will use the Yearly setting if that was enabled in Registry.
    4. Select a Resource Code.
      1. Dash360 will list all resource assignments tied to that code across the project.
    5. Check the assignments you want grouped under that cap.
    6. Click Save.
How it works:
  • Only assignments with the same resource code can be grouped.
  • The system tracks them together, applying indirects until the combined total hits the cap (e.g. $50,000).
  • After that, indirects are set to zero until the next fiscal year (if Yearly is selected).
  1. Apply the MTDC at the Resource Assignment Level: The most common method is applying MTDC directly to individual resource assignments.
    1. Go to the Budget module -> select Budget Form.
    2. Open a Resource Assignment (e.g. Labor, NonLabor, or Travel).
    3. Click Edit.
    4. Scroll to the MTDC option -> Set to Yes.
    5. Choose a Frequency (Once or Yearly).
    6. Click Save and Close.
  2. Example: MTDC = $50,000
    1. October: Direct + Escalation = $30,000. Full indirects applied.
    2. November: Pushes total over $50,000. Partial indirects applied.
    3. Remaining months in fiscal year: Indirects = 0.
    4. (If selected yearly option for frequency) New fiscal year: Cap resets and process repeats
Additional Notes from Practice:
  • Cap Reset: If “Yearly” is selected, the cap resets automatically at the start of each fiscal year.
  • Accuracy: Always confirm resource assignments are properly coded (Direct, Escalation, Indirect) to avoid miscalculations.
  • Sub-awards: MTDC applies only to the first $X of each sub-award. Amounts above the cap are excluded.
  • Overrides: You can override the calculated value if institutional policy requires.
  • Verification: Use the Cost Summary or Indirect Reports to confirm values are being applied correctly.