Indirect Costs

Negotiated Indirect Cost Rate Agreement (NICRA)

SIU Indirect Cost Policy

USDA - NIFA Indirect Cost Limitation Guidance (Including Subawards)

The university applies the federally negotiated indirect cost rate, established by the U.S. Department of Health and Human Services, when submitting applications or proposals for sponsored funding. This rate varies based on whether it predominantly occurs on or off campus.

Limitations on indirect cost recovery will be taken into account under the following conditions:

1. Statutory limitations imposed by the U.S. Congress.
2. Regulatory restrictions imposed by a U.S. government agency as published in the program guidelines.
3. Restrictions applicable to U.S. domestic, non-profit entities, provided they are published and uniformly applied to all grantees.
4. State of Illinois funding is contingent on the specific agency’s negotiated rates.

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

Calculation:

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, off-site facility rental, capital expenses, stipends, tuition waivers and subcontract amounts in excess of $25,000. 

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