Office of
Research

College of Human Medicine




Office of
Research

Indirect Cost Calculation

Additional Budget Information Needed to Support Off Campus IDC Rate (26%) Request

Research activity creates costs at the university above and beyond the project specific (Direct) costs These costs are referred to as Facilities and Administration (F&A or Indirect) costs and are included in budgets at the negotiated rate between the university and the Federal Government.

In most cases, F&A (also referred to as indirect costs) at Michigsn State University is calculated at the negotiated 52% rate. The exception to this is when more than 50% of the project costs are to be conducted off campus. In that case, the off campus MSU rate is applied--26%. The important deciding factor is how much of the work/costs during the project are generated on campus vs. off campus. The reason behind this is that when work on a project is actually being conducted off campus, it is not generating the additional indirect costs (such as electrical expenses, heating costs, use of MSU owned buildings, Department office supplies, support staff time, etc.)

Therefore, when creating project budgets that are to have more than 50% of direct costs/activities conducted off campus, it is necessary to create a 2 column detail of the project costs, one for on-campus and one for off-campus. In this way, the Conhtract and Grant Administration reviewer will have the necessary support information to approve a F&A rate of 26% instead of the 52% that is the standard on campus MSU rate.

 

















For more information, contact Sally Harris in the Office of Research at Sally Harris and visit the Contract and Grant Administration website on this topic.