Transcript INDIRECT COSTS - Oklahoma State Regents for Higher Education

INDIRECT COSTS
Aka: General Operating Funds,
Administrative Overhead, F&A (Facilities
and Administrative), Overhead Costs
Indirect Costs
• Covers services and products essential
for your overall organization, and
consumed, in some small degree, by
your projects
Indirect Costs
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Examples:
Telephone bill
Space rent or payment
Electricity
Insurance
Equipment used by everyone, not just for
your project (xerox, laboratory equipment,
pencil sharpeners, file cabinets)
• Wear and tear on equipment
Indirect Costs
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Examples:
Custodial services
Security
Accounting
Payroll
Legal support
Indirect Costs
• Calculated as a % of total direct costs
• Indirect Cost Pool
Direct Cost Base = Indirect Cost Rate
• Approved rate from a state or federal
agency
• Range – 5% of a chartered school to
75% research university
• Most – 48%-57%
• Off Campus lower – 17% to 27%
Indirect Costs
• Some grants restrict or cap the amount of
indirect cost allowed, i.e. 5% or 10% of the
total budget
• Equipment over a certain amount is excluded
in the calculation - $500 to $5000 defines
equipment
• Also excluded – off campus facility rental,
patient care charges, scholarships,
fellowships, tuition remission, subgrants
Indirect Costs
• Bad Idea: Waive all or part of indirect
cost rate as an inkind contribution
• Indirect costs contribute to the university’s
ability to support research and
grantsmanship. It is needed: it is planned
for by the granting agency.
• DON’T WAIVE IT!!
Indirect Costs
• Other uses:
• Sharing with the grant writer or
principal investigator (PI) for support
• Sharing with the department
sponsoring grant
• Sharing with the college sponsoring
grant
Indirect Costs
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Other uses:
Building a fund for special purpose –
Professional development
Grant solicitation travel
Student travel
One-time purchase
Faculty recognition
Indirect Costs
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Oklahoma Higher Education Institutions
Indirect cost range: 43-52%
Some use only salary and fringe benefits
Off campus – 13-28%
Of the 25 institutions, 7 do not have an
indirect cost rate established
Indirect costs
• Worksheet website
• http://www.ccas.com/ccasrate.html
CCAS is a software company, not a
government agency
• http://www.dau.mil/pubs/gdbks/icmguid
e.asp
Indirect Cost Management Guide, 1998, a
whitepaper from Department of
Defense
Indirect Costs
• Indirect costs are reality – all
institutions should negotiate a
rate