POLICIES & PROCEDURES
Indirect Costs/Overhead/Facilities & Administrative Costs 98-05
November 21, 1997, Revised February 2001 & March 2004
Please check the Facts for Forms page for the latest fringe benefit and indirect cost rates.
It is the policy of Florida Atlantic University to request full recovery of all costs incurred in the performance of externally supported projects. This includes both direct and indirect costs.
Indirect costs (now known as "Facilities and Administration" or "F&A" by the Feds), or overhead, are all costs incurred that are not readily identifiable with a specific project, but that are necessary to the general operation of the University and the successful completion of the project.
Included in the calculation of the indirect cost rate are utilities, general and departmental administration, library, accounting and purchasing services.
Indirect Cost Rates change periodically - Click for the most recent rates or the Facts for Forms page.
The base used to calculate the F&A is “Modified Total Direct Costs,” (MTDC) consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified Total Direct Costs excludes equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowship as well as the portion of each subgrant and subcontract in excess of $25,000.
Known formally as the “Facilities and Administrative Cost Rates” (F&A), these added to the total direct costs--reflect the true cost of a project initiated by Florida Atlantic University faculty and should be included in all budget proposals for projects. Waivers to this may be granted only when a funding agency’s guidelines specifically indicate it will only pay a different rate. If you have any questions, please contact your college’s coordinator in Sponsored Programs or e-mail Camille Coley.
Indirect costs will not be waived. The only exceptions are:
- Submission to an agency whose charter either explicitly limits or prohibits payment of indirect costs to outside organizations. (Please show written evidence of this limitation or prohibition when submitting your Pre-Award Routing Sheet for approval).
- Recommendation of the Director of Sponsored Programs that a waiver of indirect cost is necessary to conduct the research.
Send comments to Camille Coley or Penny Ashwanden
Updated July 2006 by Dianne Parkerson
