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Allowable and allocable costs must be appropriately classified as direct or indirect charges. It is essential that each item of cost be treated consistently in like circumstances either as a direct or an indirect cost. Direct costs are expenses that are specifically associated with a particular Federal award eligible project and that can be directly assigned to such activities relatively easily with a high degree of accuracy. Common examples of direct costs include salary and fringe benefits of personnel directly involved in undertaking an eligible project, equipment and supplies for the project, subcontracted service provider, or other materials consumed or expended in the performance of a grant-eligible project. Indirect costs are(1) costs incurred for a common or joint purpose benefitting more than one Federal award eligible project, and(2)not readily assignable to the project specifically benefited, without effort disproportionate to the results achieved. They are expenses that benefit more than one project or even more than one federal grant. Common examples of indirect costs include utilities, local telephone charges, shared office supplies, administrative or secretarial salaries. For indirect costs, Lee County may charge a 10 percent de minimis rate of modified total direct costs (MTDC). According to UG Section 200.68 MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance the subawards under the award). MTDC EXCLUDES equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of$25,000. SPECIAL PROVISIONS FOR STATE AND LOCAL GOVERNMENTS There are some special provisions of the UG that apply only to states, local governments, and Indian Tribes. § 200.444 General costs of government. (a) For states, local governments, and Indian Tribes, the general costs of government are unallowable(except as provided in § 200.475). Unallowable costs include: (1) Salaries and expenses of the Office of the Governor of a state or the chief executive of a local government or the chief executive of an Indian tribe; (2) Salaries and other expenses of a state legislature, tribal council, or similar local governmental body,such as a county supervisor,city council,school board,etc.,whether incurred for purposes of legislation or executive direction; (3) Costs of the judicial branch of a government; (4)Costs of prosecutorial activities unless treated as a direct cost to a specific program if authorized by statute or regulation (however, this does not preclude the allowability of other legal activities of the Attorney General as described in § 200.435); and