Indirect Costs

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Also known as Facilities & Administrative (F&A) Costs or Overhead

Facilities and Administrative Costs (Indirect Costs) Rate Agreement

SIUC Indirect Costs Guidelines

What’s Included in Indirect Costs:

  • Space and facilities maintenance
  • Utilities
  • Library resources
  • Processing of project-related fiscal paperwork by University service offices (Accounting Services, Purchasing, etc.)
  • Monitoring of project expenditures
  • Compliance with government regulations
  • Departmental administrative support – salary, office supplies, general purpose office equipment

University Policy:

It is the University's policy to recover our federally negotiated indirect cost rate (set by the U.S. Department of Health and Human Services) from all agencies that are legally bound by that agreement and from all other federal, state, and private funding agencies that will reimburse the University at the negotiated rate.

The rate varies depending on whether the sponsored project is for research, training, or other activities and whether it will take place primarily on or off campus. Click for current rates.

When an agency's official indirect cost reimbursement rate is less than the University’s negotiated rate, or where an agency does not allow for indirect costs, a reduction or waiver of indirect costs can only be granted by the OSPA Director/OVCR using the Indirect Cost Waiver/Reduction Form. The agency must also provide a written statement of its official public policy on indirect cost reimbursement.  


In the case of full indirect cost recovery, the relevant institutional rate is assessed on the project's modified total direct costs (MTDC), which exclude the following budget items: equipment, space rental costs, capital expenses, stipends, tuition waivers, and subcontract amounts in excess of $25,000. 

If the agency's reimbursement rate is lower than SIUC's federally negotiated rate, no budget items are excluded from total direct costs unless the agency's policy stipulates otherwise.