Indirect Costs (F&A)
Facilities and Administrative (F&A, indirect, or overhead) costs are those costs associated with providing and maintaining the infrastructure that supports the research enterprise and which cannot be easily identified with a specific project. F&A costs are classified into two broad categories: “Facilities” and “Administration.” “Facilities” include libraries, buildings, grounds and buildings upkeep, etc. “Administration” is defined as general administration and general expenses such as the director’s office, accounting, personnel and all other types of expenditures not listed specifically under one of the subcategories of “Facilities”.
Principal Investigators and campus administrators are responsible for submitting proposals that provide for full indirect cost recovery unless an exception is granted by a University official with the authority to do so. Every effort should be made to recover all costs of extramurally-funded projects by applying an appropriate federally-negotiated rate.
To determine the applicable F&A rate for a specific project the following factors must be considered:
- project type (research, instruction, or other sponsored activity)
- whether the project is on-campus or off-campus
- funding source
In some circumstances, rates other than those specified in the UMS agreement may be appropriate. Those instances include the following:
- some agreements with the State of Maine
- projects for sponsoring agencies that have a Master Agreement with UMaine
Researchers are strongly encouraged to consult with ORA prior to initiating or participating in any discussions of project cost and F&A application with sponsors to ensure appropriate project costing. It is important to determine the appropriate F&A rate at the very beginning of the budget building process.