Indirect Costs

Some funding programs request a copy of the indirect cost agreement be included in the proposal. Download a copy of the Indirect Cost Agreement.

Extramural grant proposals must request reimbursement of Facilities and Administration (indirect) costs consistent with agency and UW System policies.

• 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, 2012, are as follows:
• On-campus rate: 38% of all salaries, wages, and fringe benefits
• Off-campus rate: 13% 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 or rented 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.