The University of Florida Indirect Cost Rate Agreement Explained
If you`re a grant applicant who plans to work with the University of Florida, understanding the indirect cost rate agreement (ICRA) is essential. The ICRA outlines the indirect costs or overheads that the University charges when working on a grant.
What are indirect costs?
Indirect costs are expenses that cannot be traced directly to a particular project but are necessary to support the project`s general requirements, such as salaries and building costs. Indirect costs are typically accounted for as a percentage of the direct costs of the project.
The University of Florida`s Indirect Cost Rate Agreement
The University of Florida has an indirect cost rate agreement with the U.S. Department of Health and Human Services. The agreement allows the University to charge indirect costs on federally sponsored projects.
The current indirect cost rate agreement for the University of Florida is 56.5% of the direct costs of the project. This means that if a grant is awarded for $100,000, the University can charge an additional $56,500 in indirect costs.
Why does the University of Florida charge indirect costs?
Indirect costs are necessary to support the infrastructure of the University of Florida. These costs support items such as administrative staff, maintenance, and building expenses. They also support the cost of complying with federal regulations and oversight.
The University of Florida`s indirect costs are calculated based on a predetermined rate that is applied to the direct costs of the project. The rate is based on the University`s cost structure and the requirements set out by federal regulations.
Conclusion
The University of Florida`s indirect cost rate agreement is an essential consideration for grant applicants. Understanding the indirect costs that the University charges when working on a grant can help grant applicants budget effectively and avoid unexpected expenses.
If you`re planning to work with the University of Florida on a grant, be sure to review the indirect cost rate agreement to better understand the indirect costs you`ll be responsible for paying. With proper planning and understanding of the indirect cost structure, grant applicants can ensure that their project stays on budget and meets all of their objectives effectively.