|
INDIRECT COST PROPOSAL
COMMONALITIES
Nine NPCs that administer
federal funds were contacted regarding their Indirect Cost Proposals (ICP).
The purpose was to determine what expenditures are typically included -
or may be included - as indirect costs in the ICP. Compiling and sharing
this information accomplishes two objectives. First, including the same
types of costs as indirect encourages inclusion of all allowable costs.
Second, some homogeneity can be achieved among the costs allocated as
indirect by NPCs.
Three types of costs are incurred in
administering federal awards:
- those that are always direct, i.e.,
those identifiable to specific award(s), charged or directly
supported by the award(s);
- those that are always indirect, i.e.,
costs directly related to management with no direct benefit to a
research grant; and
- those that could go into either
category depending on the circumstances.
In regard to Items 2 and 3, NPC’s
surveyed typically used most or all of the following accounts in
reporting their management (indirect) expenses:
-
Salaries, Wages
-
Payroll tax expense
-
Employee benefits
-
Advertising (for
employee recruitment)
-
Bank charges
-
Computer software and
supplies
-
Computer maintenance
and support
-
Conference
registration, education, meetings and training
-
Depreciation
-
Subscriptions, Dues,
Books, Journals
-
Employee recruitment
and relocation
-
Equipment rental
-
Small equipment
-
Insurance
-
IRB fees
-
Joint Personnel Act (JPA) costs
-
Loss on disposal of
equipment
-
Office supplies
-
Outside services
-
Postage and delivery
-
Printing and
publication
-
Professional fees
-
Repairs and
maintenance
-
Support services
(support to VA)
-
Taxes, permits, fees,
business licenses
-
Telephone
-
Travel
The “gray zone” comprises various
expenses supporting the investigators and their research that may or may
not be included as indirect costs, depending on the circumstances. If
these costs are to be classified as indirect, it is essential that they
not be allocated to award-specific accounts. For example, support may
derive from residual funds from an industry sponsored grant, from seed
funding provided by the NPC for non-project specific costs, or from
other administrative support provided by the NPC. The following
categories may have costs allocated as indirect in the proper
circumstances:
- Books, journals, reference materials
- Computer software (general, not grant
specific) and supplies
- Conference registration fees and
related travel
- Dues and subscriptions
- Employee recruitment and relocation
- IRB fees
- Meetings and training
- Overhead charges on JPAs
- Office supplies for the PI
- Postage and shipping
- Printing and publication
- Repairs and maintenance
Other costs that might be considered
indirect when the expenditure will benefit multiple projects include the
following:
- CORE facilities and general research
support - grant writers, IT support, pharmacy support,
administrative staff, lab improvements and maintenance
- Lab supplies - low dollar amounts of
general use supplies used by multiple projects
- Leased research equipment used for
multiple projects
- Small equipment and computers used for
multiple projects
Also, “Bid & Proposal” is a
legitimate category of indirect cost used by some of the larger
nonprofits which is understood by and acceptable to the DHHS Division of
Cost Allocation. This would include expenditures for pilot or
preliminary studies leading to grant submissions or proposals.
Many subjective and interpretive elements
come into play in the development of an indirect cost rate. NPCs
embarking on this process should obtain the services of expert
consultants or colleagues with considerable experience. |
