Indirect Costs

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 Research & Sponsored Programs Office.

The Research & Sponsored Programs Office is available to help you determine what the funding agency will allow and to help compute the appropriate rate. In general, programs are computed using NSU'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

48.0% of salaries and wages (not including fringe)
Example with Salary, Fringe, and Indirect

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.