{"id":19,"date":"2025-12-02T17:03:37","date_gmt":"2025-12-02T22:03:37","guid":{"rendered":"https:\/\/www.clarku.edu\/sponsored-programs-and-research\/?page_id=19"},"modified":"2026-01-27T14:24:16","modified_gmt":"2026-01-27T19:24:16","slug":"indirect-costs","status":"publish","type":"page","link":"https:\/\/www.clarku.edu\/sponsored-programs-and-research\/grants-and-contracts\/indirect-costs\/","title":{"rendered":"Indirect Costs"},"content":{"rendered":"\n
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Indirect costs represent a joint calculation by Clark University and the Department of Health and Human Services (DHHS), our cognizant agency, of the expenses incurred by the university to administer research, educational, training, and other sponsored programs.<\/p>\n\n\n\n

Because these represent \u201cpooled\u201d or average costs, it is difficult to find an exact correspondence between the administrative expenses of a project, and the actual charges applied to it. It would be difficult, for example, to identify campus security costs, or library operating expenses associated with the life of a particular project.<\/p>\n\n\n\n

Because indirect costs necessarily reflect an averaging of administrative expenses, some projects will cost the University more in overhead than will be received in reimbursement from supporting agencies; conversely, other projects will receive more for indirect costs, than they will actually require.<\/p>\n\n\n\n

It is imperative that appropriate administrative overhead rates be applied to proposed projects. Income lost due to under-recovery of indirect costs can never be recaptured. This, in turn, undercuts the University\u2019s efforts to maintain and improve support services for sponsored projects.<\/p>\n\n\n\n

When budgeting indirect costs for grants, it is useful to remember that projects are NOT rejected on the basis of these expenses. Applying negotiated rates to federal projects is not only appropriate, but expected. If the technical aspects of a proposal are well-received, agencies will negotiate budget reductions, if they consider the request to be excessive. It should be noted that the Principal Investigator or Project Director is NOT authorized to negotiate indirect costs recovery on behalf of Clark with sponsoring organizations, public or private.<\/strong> This is the responsibility of OSPR personnel.<\/p>\n\n\n\n

The \u201crulebook\u201d governing indirect costs is the Office of Management and Budget\u2019s\u00a0(OMB) Circular A-21<\/a>, \u201cThe Federal Cost Principles Applicable to Educational Institutions.\u201d While universities individually negotiate their indirect cost rates with their particular cognizant agency, A-21 specifies the basis for determining those costs.<\/p>\n\n\n\n

Clark University\u2019s indirect cost rates are comprised of three major categories: Facility-related costs, service-related costs, and administrative costs.<\/p>\n\n\n\n