1 / 6

Grantee Budget: Direct and Indirect Costs

Grantee Budget: Direct and Indirect Costs. Presented by: Freddie Isaac March 28, 2013. What are direct costs?. Direct costs are those costs that can be identified specifically with a particular sponsored project.

melodie-levine
Download Presentation

Grantee Budget: Direct and Indirect Costs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Grantee Budget: Direct and Indirect Costs Presented by: Freddie Isaac March 28, 2013

  2. What are direct costs? • Direct costs are those costs that can be identified specifically with a particular sponsored project. • Direct costs consist of salaries and wages, fringe benefits, material and supplies, services, travel, etc.

  3. What are indirect costs? • Indirect costs are those costs that cannot be identified specifically with a particular sponsored project but are necessary to the operation of the organization and the performance of its programs. • Examples of indirect costs: operating and maintaining facilities, administrative salaries, equipment, and tuition are examples of the types of costs that are usually treated as indirect costs.

  4. Types of Indirect Cost Rates • Provisional rate: a temporary indirect cost pending the establishment of a final rate. • Predetermined rate: is a rate based on an estimate of costs to be incurred. • Final rate: not usually subject to adjustment. • Fixed rate: similar to predetermined rate except the rate is carried forward  

  5. Things to know • Who needs an indirect cost rate? • Any organization in which cost can no longer be identified with a direct cost source. • Why do I need an indirect cost rate? • So that the organization can have more efficient accounting records which helps with audits, and financial management. • Which agency should approve my indirect cost rate(s) and issue a Negotiation Agreement? • Usually the agency you receive the most funds from.

More Related