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Indirect Costs
Also known as Facilities and Administrative costs (F&A costs).
Actual costs incurred to conduct the normal business activities of an organization that cannot be identified with or directly charged to a specific project or activity.
Indirect cost rates are used to recover the indirect costs of a sponsored project.
Maricopa's indirect costs are developed under the requirements of the US Office of Management and Budget Management and Budget Circular A-21, Cost Principles for Educational Institutions.
Maricopa negotiates indirect rates with the Department of Health and Human Services(HHS) under A-21.
Negotiated, approved rates are to be used for all agreements with the Federal government and for most nonfederal projects.
The rate agreement is periodically renegotiated (usually every three years) so rates will vary.
Indirect Cost Rates as of July 1, 2011
Some granting agencies allow for a lower indirect cost rate than the Maricopa negotiated rate, thereby allotting more dollars for program use. If so, this must be identified either in the approved contract, narrative, or budget.
Indirect costs are recovered by applying the applicable indirect cost rate to the direct cost expenditures incurred on each project.
The calculated indirect cost amount is charged to each project by the Grants Accountant.
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