HOW ARE FACILITIES AND ADMINISTRATIVE (INDIRECT) COSTS DETERMINED?
While the Direct Costs of research are those costs, such as personnel, supplies, equipment, etc, which can be easily assigned to each sponsored project, the Facilities and Administrative (FAC) [Formerly known as Indirect Costs or IDC] of research are those institutional costs, such as facilities depreciation and maintenance, library services and administrative support, which cannot be easily assigned to specific projects. FAC are virtually always expressed as a percentage of expenditures for direct costs. Even though funds for FAC are budgeted when a grant account is established, monies are transferred from the FAC category to the MUOT general fund only in proportion to expenditures for direct costs. For example, if the FAC rate for a particular account is 25% of total direct cost (TDC), for every dollar expended by the P.I. for supplies, 25 cents is transferred from the FAC budget of that account to the MUOT general fund. A common misconception is that MUOT “takes” its FAC up-front wh
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