Indirect Costs

Indirect costs (IDC) are the real costs of University operations that are not readily assignable to a particular project. Officially known as Facilities and Administrative costs, these costs are determined by federal auditors under the guidelines of OMB Circular A-21. Indirect cost rates are negotiated with the Department of Health and Human Services (DHHS), the federal cognizant audit agency for the University of Michigan.

IDC rates are applicable to all federally sponsored projects and, in accordance with University policy, are also extended to include all other sponsored activities.

The approved indirect cost rates applicable to all proposed projects are shown in Indirect Cost Rates chart. Full recovery of these costs is expected on all grants or contracts.

Also at the bottom of the rate page are links to the pdf of the rate agreement between the University and the federal government.

The University will honor indirect cost rates established by non-profit, non-governmental sponsors if identified as the written policy of the organization, and the policy is uniformly applied to all recipients of funds. [See also: Full Cost Recovery].

Any other variance from stated indirect cost rates must be discussed with DRDA in advance of proposal submission. See Non-federal Indirect Costs.