Where a project supported by a single grant or contract is conducted at two or more physical locations, the following principles should be observed for determining the appropriate indirect cost provision:

1. Where the total annual amount (direct costs only) of the grant or contract is less than $250,000, a single indirect cost rate will be applied. This rate will be the one currently applicable to the location where the preponderance (more than 50%) of project salaries is located.
2. Where the total annual amount (direct costs only) of the grant or contract is $250,000 or more, (a) provisions should be made for use of appropriate rates to be applied to project costs specifically assigned to each location, (b) In the absence of the institution’s ability to specifically identify and assign costs to each location, use the salaries as a basis for applying the rates to the other MTDC project costs, the rates can then be applied to MTDC project costs at each location.

For example, if we have a project with $275,000 direct costs (consisting of salaries of $150,000, other MTDC categories of $100,000 and equipment of $25,000) with 70% of the salaries on-campus and 30% off-campus, indirect cost rates would be applied as follows:

Under this method (after the award), the academic department would need to keep records of salary costs at each location and provide the information to the Grant and Contract Accounting Office no less frequently than semi-annually for application of rates.

Questions concerning special indirect cost arrangements should be referred to Office of Sponsored Programs, extension 3-4043.

Office of Sponsored Programs
4333 Brooklyn Ave NE | Box 359472
Seattle, WA 98195-9472 | (206) 543-4043 | Fax 685-1732 | Contact Us
Modified: October 9, 2008