Indirect Costs Indirect costs are real costs to the University and are incurred through common activity and, therefore, cannot be specifically identified with a particular project or program. Use of buildings and equipment. Sponsored project administration and accounting. Library expenses and collection acquisition. Institution-wide general administrative expenses.
Most sponsors allow projects to be charged a proportionate share of indirect costs.
The University of Tulsa negotiates its indirect cost rate with the Department of Health and Human Services. Full recovery of this rate is essential to the financial well-being of the University. If a sponsor will not reimburse the University for its full indirect cost rate, the unallowable portion must be shown as University cost sharing. Direct Costs Direct costs are those expenses which can be specifically identified with a particular project or program. General categories which comprise direct costs are highlighted below.