Indirect costs, also known as facilities and administrative costs (F&A costs), are the institutional or infrastructure costs of managing and running programs that cannot be directly attributed to a program or activity. These costs include items such as printing, equipment use, accounting, utilities, professional development, security, library services, ITS, and administrative costs that are hard to calculate but are true costs for running programs. The indirect cost rate reimburses the college for that fraction of its indirect costs that the granting agency agrees to bear. Federal agencies require colleges and universities to use rates negotiated with a government entity. In the case of Linfield College, this institution's negotiation partner is the Department of Health and Human Services.
In developing budgets for submission, applicants at Linfield College are to calculate project costs using the following rates.
Federal Agencies (e.g., National Science Foundation)
15% rate applied to all direct costs for requests in support of projects that take take place off campus
37% rate applied to all direct costs for requests in support of projects that take place on campus
38% rate for calculating fringe benefits for project personnel excepting students, adjuncts, and part-time and temporary staff
Although indirect expenses are recognized as real costs, some federal funding agencies (e.g., National Endowment for Humanities) will not provide full reimbursement of indirect costs. Given this reality, applicants should strive to recover the maximum indirect costs allowable by the granting agency.
Non-federal Agencies (e.g., private foundations)
All grants and contracts that will require the college to absorb the indirect cost must be discussed with the Director of Foundation and Corporate Relations in Institutional Advancement.
Indirect cost amounts generated by charges to research grants and contracts will be transferred from restricted funds as follows:
Funds deposited to the general college budget will be used at the discretion of the Vice President for Finance and Administration/Chief Financial Officer. Funds deposited to Academic Affairs will be used at the discretion of the Vice President for Academic Affairs/Dean of Faculty.
For questions about this policy, please contact Tiffany Cook, grants administrator, by email or at 503-883-2685.