Office of Grants and Faculty Development

Facilities and Administration (a.k.a. Indirect Costs)
Sometimes called "overhead," Facilities and Administration (F & A) costs are those incurred by the University that are not related directly to carrying out your project, including:
- general administration expenses,
- building maintenance and operation,
- equipment depreciation,
- grant administration expenses,
- library expenses, and
- departmental and college expenses.
Extramural grant proposals must request reimbursement of F & A costs consistent with agency policies. F & A costs are a real cost to the University, whether the financial support is from general or program revenue sources. The inclusion or exclusion of F & A costs cannot be used as a bargaining point to secure extramural support. F & A cost rates are periodically negotiated by the University of Wisconsin System and the federal government for federal programs.
Negotiated cost rates effective July 1, 2009, are as follows:
- On-campus rate: 40.5% of all salaries, wages, and fringe benefits
- Off-campus rate: 18% of all salaries, wages, and fringe benefits
The off-campus rate applies if more than 50% of the project is performed off-campus in facilities not owned by the University.
Inasmuch as F & A cost funds are intended to reimburse the University for these expenses, the specific project has no claim on them