GIM 13
Indirect Cost Rates

UNIVERSITY OF WASHINGTON

Office of Research
Office of Sponsored Programs

GRANTS INFORMATION MEMORANDUM 13

April 23, 2007

SUBJECT: Indirect Cost Rates: For Proposal Preparation and Application on Awards

SUPERSEDES: GIM 13, July 15, 2005

POLICY REFERENCE: University Handbook, Vol. IV, Part II, Chapter 4, Sect.3

University-wide indirect cost rates are determined on the basis of a cost study prepared by the Financial Management Division and reviewed by Federal auditors/negotiators. Consistent with the cost principles for educational institutions published by the Federal Office of Management and Budget in OMB Circular A-21, these indirect cost rates are expressed as a percentage of modified total direct costs (MTDC).

Please note that the May, 1996 revision of OMB Circular A-21 replaced the term indirect costs with the term facilities and administrative (F&A) costs. The terms overhead costs, indirect costs, and F&A costs have the same meaning. However, throughout this GIM 13, the term F&A is used.

Attachment A summarizes the F&A rates to be used in proposals for the period July 1, 2005 through June 30, 2009. The rates in effect on July 1, 2005 should also be used as an estimate in future budgets beyond that time. (Also see Attachment D for special guidelines for the application of rates).

Acceptance of non-standard rates is at the discretion of the Executive Director of the Office of Sponsored Programs. However, OSP will generally accept a lower F&A rate from a non-profit entity when the rate has been established through published policy as evidenced by its appearance on the Sponsor’s website or in the official Program Announcement. Additionally, be aware that if the sponsor’s policy does not specify a base to which the rate may be applied (e.g., “XYZ Foundation will pay 10% of salaries and wages only”), the Office of Sponsored Programs will use a Total Direct Costs (TDC) base to calculate the F&A. 

Attachment B contains the guidelines to be followed when the activity supported by a single award is conducted at multiple locations.

Attachment C provides a brief explanation of the indirect cost policies applicable to grant and contract relationships with State agencies.

Attachment D describes how indirect cost rates are applied to the various types of awards.

Questions may be referred to your representative in the Office of Sponsored Programs at extension 3-4043 or http://www.washington.edu/research/osp/staff.php.