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.
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