Indirect costs are costs related to expenses incurred in conducting or supporting research or other externally-funded activities, but not directly attributable to a specific project. General categories of indirect costs include general administration (accounting, payroll, purchasing, etc.), sponsored project administration, plant operation and maintenance, library expenses, departmental administration expenses, depreciation or use allowance for buildings and equipment, and student administration and services.
Whenever possible, proposals should request full reimbursement of indirect costs. When a proposal provides for less than full indirect cost reimbursement, the circumstances should be discussed in advance with the Office of Research & Sponsored Programs.
The Office of Research & Sponsored Programs is available to help you determine what the funding agency will allow and to help compute the appropriate rate. In general, indirect costs are computed using Northeastern State University's Federal Negotiated Rate. Indirect costs change based on our negotiations with the Federal Government (currently, every three years).
NSU’s Federal Negotiated Indirect Cost Rate
- 50.0 percent of salaries and wages (not including fringe) for on-campus projects
- 15 percent of salaries and wages (not including fringe) for off-campus projects
(Indirect Costs should be calculated for all state employee salaries, even if they are not NSU employees. Public school teachers are state employees.)
Limits on Indirect Costs
Some funding agencies limit the amount of indirect costs that can be requested. When not using the negotiated rate, a percentage of all direct costs is commonly used.
Exclusions
Student scholarships must be excluded from any indirect cost calculations based on a percentage of direct costs.
The following items are often considered personnel costs, however, when using the negotiated rate of 50 percent, do not compute fringe and indirect costs on:
- Consultant Fees
- Honorariums
- Stipends