These costs also include fringe benefit costs of applicable salaries and wages as well as a portion of general administration expenses, operation and maintenance expenses, and depreciation and use allowances. These costs include expenses of deans of students, admissions offices, registrars, counseling and placement services, student advisors, student health and infirmary services, etc. They also include fringe benefit costs of applicable salaries and wages, as well as a portion of general administration expenses, operation and maintenance expenses, and depreciation and use allowances. Shared expenses are charged against the General Fund or other institutional grant funds. Most grants and contracts provide for recovery of indirect costs.
Recovery is based on indirect-cost percentage rates.
HHS negotiates the rates for all federal agencies involved in grant and contract agreements with institutions. Other Sponsoring Agencies Rates negotiated with HHS also apply to agreements with other sponsoring agencies except state agencies. This represents the federal cap for the administrative component of the indirect cost rate. If the state agency acts merely as a conduit for federal funds, the negotiated rate applies. As grant and contract funds are expended, indirect costs are charged to the particular grant or contract fund and credited to the institutional Indirect Cost Clearing Fund pending distribution.