In the first of a series of discussions on research economics, Craig Carmichel, director of Finance for Academic and Research, discussed direct and indirect costs. The broad category of costs includes items like staff and faculty salaries, benefits, lab supplies, building, utilities and equipment. Costs are partially reimbursed through federal recovery methodologies, which classify them as direct or indirect.
Direct costs relate to grant specific items.
Indirect costs relate to a general allocable expenditure like building, utilities and support services. In addition, indirect cost recoveries are capped below the actual Vanderbilt costs. It comes as no surprise that the federal recoveries are less than the costs associated with the research, with Vanderbilt making up the difference.