Facilities and Administrative Costs (Indirect Costs)

Facilities and administrative costs (also referred to as indirect costs) are those costs that are incurred for common or joint objectives and therefore cannot be identified with a particular activity. These costs are classified under the following categories:

• Building/equipment depreciation

• Interest on external debt

• Operation and maintenance

• Library

• General administration

• Departmental administration

• Sponsored project administration

• Student administration

Cost Analysis calculates facilities and administrative rates for research, instruction, and other sponsored activities and submits those calculations as a proposal to the University’s cognizant federal agency, the Department of Health and Human Services (DHHS). Using the University's proposal as a starting point, the University and DHHS eventually arrive at a negotiated rate agreement.

Facilities and Administrative rate agreements are available at this link.