What if my grant requires direct costs that are normally considered indirect (i.e.,F&A) costs?
Some grants have “special circumstances and purposes” (as discussed in OMB Circular A-21) that require a direct charge for items that would ordinarily be considered an indirect charge. For example, one NJIT grant operates a telephone hot line. Telephone equipment and staff to answer the telephone are usually indirect costs, because they usually benefit multiple cost centers. The special purpose and circumstances of this grant have permitted these direct expenses to be charged to the grant. Another NJIT grant supports disadvantaged students with school supplies. Office supplies are ordinarily an indirect cost. Again, the special purpose and circumstances allow these as direct expenses. The best way to ensure that “normally-indirect” costs may be charged as direct costs of your grant (because of some special purpose or circumstance) is to have the required costs put in the Proposal Budget, and to seek approval by the funding agency.
