Indirect Costs are costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. Indirect Costs at higher education institutions are infrastructure costs of the University needed to support the programs of the institution, including research and other sponsored programs. Building depreciation, maintenance costs, the cost of electricity and heat, accounting services, personnel services, departmental administration, purchasing, and human subject administration are examples of Indirect Costs.
About Facilities & Administrative (F&A) Costs:
Facilities and Administrative (F&A) costs (also known as “indirect costs’ or “overhead costs”) are those costs of an institution which are not readily identifiable with a particular project or activity but nevertheless are necessary to the general operation of the institution and the conduct of its activities. The cost of operating and maintaining buildings, grounds and equipment depreciation, general and departmental administrative salaries and expenses, sponsored programs and library costs are types of expenses usually considered as F&A costs.
In theory, all such costs might be charged directly; practical difficulties however preclude such an approach. Therefore, they are usually grouped into common pool(s) and distributed to those institutional activities benefited through a cost allocation process. The end product of this allocation process in an F&A rate(s) which is then applied to individual grant and contract awards to determine the amount of indirect costs chargeable to the award.
F&A costs are calculated on what is called a Modified Total Direct Costs (MTDC) base. This base consists of all salaries and wages, fringe benefits, materials, supplies, services, travel and subgrants and subcontracts up to the first $25,000 of each subgrant or subcontract (regardless of the period covered by the subgrant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships and fellowships as well as the portion of each subgrant and subcontract in excess of $25,000.
The U.S. Department of Health and Human Services is Marshall University and Marshall University Research Corporation’s “cognizant agency” for negotiating facilities and administration (F&A) and Fringe Benefit rates to be charged on all sponsored agreements.
NOTE: Effective June 1, 2023, all proposal budgets being submitted for funding with an F&A Rate that is not in accordance with our approved rate agreement are to be calculated on the Total Direct Costs and not the Modified Total Direct Costs unless otherwise specified in the solicitation or RFP.
For example: An agency that limits the F&A to 15% would have the 15% calculated on all costs.
F&A Rates:
These facilities and administration rates (F&A) must be charged for all sponsored programs unless a program or an agency has been granted a legislatively endorsed restriction on the F&A rate that is to be charged or, in the case of private agencies, an established written policy exists which limits F&A rates.
| F&A Rates FY2023
The new rates should be applied to all proposals submitted with deadlines occurring on or after January 1, 2019. |
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| Rate Categories | Category | Duration | Applicable Rate |
| Organized Research | On-Campus | 07/01/19 – Until Amended | 48.00% |
| Off-Campus | 07/01/17 – Until Amended | 26.00% | |
| Instruction | On-Campus | 07/01/17 – Until Amended | 48.80% |
| Off-Campus | 07/01/17 – Until Amended | 26.00% | |
| Other Sponsored Activities | On-Campus | 07/01/17 – Until Amended | 30.00% |
| Off-Campus | 07/01/17 – Until Amended | 26.00% | |
Fringe Benefit Rates FY2024:
| Effective July 1, 2023 – June 30, 2024 | |
| Marshall University, Full-time Employees | 21.73% |
| Marshall University, Part-Time Employees | 12.70% |
| Marshall University, Graduate Assistants and Student Workers | 0.00% |
| MURC Full-Time Employees | 28.66% |
| MURC Part-Time Employees | 12.95% |
PDF File FY2024 Rate Agreement
Fringe Benefit Rates FY2023:
| Effective July 1, 2022 – June 30, 2023 | |
| Marshall University, Full-time Employees | 21.38% |
| Marshall University, Part-Time Employees | 17.06% |
| Marshall University, Graduate Assistants and Student Workers | 0.00% |
| MURC Full-Time Employees | 28.07% |
| MURC Part-Time Employees | 16.39% |
PDF File FY2023 Rate Agreement