Direct vs. Indirect

1
Direct vs. Indirect

• Business and Fiscal Officers
• Meeting - 5/18/10
• Presented by
• Glen Jones, Director Post-Award
• Research and Sponsored Programs

2
Direct Cost Defined

• Direct costs are those costs that can be
  identified specifically with a particular
  sponsored project, an instructional activity, or
  any other institutional activity, or that can be
  directly assigned to such activities relatively
  easily with a high degree of accuracy. Costs
  incurred for the same purpose in like
  circumstances must be treated consistently as
  either direct or FA costs. Where an institution
  treats a particular type of cost as a direct cost
  of sponsored agreements, all costs incurred for
  the same purpose in like circumstances shall be
  treated as direct costs of all activities of the
  institution.(OMB Circular A-21 D.1.)
• Costs Necessary to meet the grants scientific
  and technical requirements.

3
Indirect Cost (FA) Defined

• FA costs are those that are incurred for common
  or joint objectives and therefore cannot be
  identified readily and specifically with a
  particular sponsored project, an instructional
  activity, or any other institutional activity.
  (OMB Circular A-21 E.1.)
• Costs associated with the administration of a
  grant.

4
Direct Costs Salaries/Benefits

• Examples of salaries directly charged to grants
• Principal Investigator (PI)
• Other Faculty typically Co-PI
• Research Assistant
• Technician
• Research Scientist
• Post Doc
• Graduate Research Assistant (GRA)

5
Indirect Costs Salaries/Benefits

• Examples of salaries considered to be FA
• Fiscal Officer
• Administrative Assistant
• Department Administrator
• Accountant
• Staff Assistant
• Administrative Officer

6
Direct Costs - Supplies

• Examples of supplies directly charged to grants
• Chemicals
• Gases
• Radioisotopes
• Computer Software (scientific technical)

7
Indirect Costs - Supplies

• Examples of supplies considered to be FA
• Pens and Pencils
• Paper and Tablets
• Files, Folders and Binders
• Computer Software (general purpose)
• General Office Supplies

8
Direct vs. Indirect Equipment

• Examples of equipment directly charged to grants
• Technical Scientific Equipment
• Computer Computer Equipment (Technical Purpose)
• Examples of equipment considered to be FA
• Copier
• Furniture
• Computer Hardware (General Purpose)

9
Direct vs. Indirect Telephone Charges

• Examples of telephone charges directly charged to
  grants
• Long Distance
• Examples of equipment considered to be FA
• Basic Line Charges
• Local Calls
• Pagers and Cell Phones
• Voice Mail

10
Direct vs. Indirect - Mailing

• Examples of mailing costs directly charged to
  grants
• Freight
• UPS/FedEx
• Priority Mail
• Examples of mailing costs considered to be FA
• Postage

11
Direct vs. Indirect Printing and Duplicating

• Examples of printing costs directly charged to
  grants
• Duplicating technical related material
• Page Charge/Reprints
• Reference Material
• Printing technical materials
• Examples of mailing costs considered to be FA
• Duplicating and Printing (administrative material)

12
Direct vs. Indirect Other

• Examples of Other costs that are generally
  considered direct
• Animals and Animal Care
• Recharge Center Charges
• Maintenance/Repair (Scientific Equipment)
• Examples of Other costs that are generally
  considered indirect (FA)
• Dues and Memberships
• Subscriptions
• Maintenance/Repair (General Purpose Equipment)

13
Direct vs. Indirect Additional Thoughts

• The previous examples are in no way comprehensive
• When in doubt, please contact RSP
• Costs generally considered FA can be directly
  charged in some cases
• Documentation is the key
• Always document technical purpose on transaction