Indirect Cost Recovery
The resources required to conduct extramural research include those elements which are distinguishable on a project-by-project basis (such as consumable supplies, salaries of active participants, equipment purchased for the project) and those that are better calculated on an institutional basis rather than cost-out by project (e.g. research administration and accounting, purchasing, library, space, maintenance).
The Federal Office of Management and Budget, in document OMB-A-21, defines allowable direct and indirect costs for federal grants and contracts. Direct costs are those that can be specifically identified with the project, whereas Indirect cost items are associated with general infrastructure support. Indirect costs are real costs to the University associated with carrying out extramurally funded research.
There are eight areas of general infrastructural support described as indirect costs:
- Departmental Administration: Administrative support such as staff salaries, supplies, and other general expenses at the college, department, and program levels. This indirect cost pool is commonly the largest of the eight factors built into the indirect cost rate
- Building use: Calculated using a depreciation schedule, and including debt service costs
- Equipment: Calculated using depreciation schedules based on "useful life"
- Operations and Maintenance: Utilities, repairs, custodial, environmental health and safety, general facilities management costs
- Library: Administration, purchase of books and periodicals
- General Administration: General administrative offices' expenses
- Student Service Administration: A portion of student services, including admissions, counseling, health services, etc.
- Sponsored Projects Administration: Typically, grant and contract office expenses and associated accounting
Indirect Cost Recovery Reports
- Overview of Research Indirect Cost Funds (PDF file - 241 kB)
- 2008-09 Campus Sources (PDF file - 16 kB)
- 2008-09 Campus Uses (PDF file - 16 kB)
- Federal ICR Flow Chart (PDF file - 20 kB)