Indirect Cost Rates

The following indirect rates applied to Modified Total Direct Costs** are effective from July 1, 2008 through June 30, 2012.

These rates remain in effect until new ones have been negotiated. Refer to the F&A Cost Rate Agreement (below).

Per Office of Management and Budget (OMB) Circular A-21, G7a, the same rate should be used throughout a multi-year proposal budget, depending on the start date.

** Modified Total Direct Costs (MTDC) - Total direct costs LESS equipment (defined as more than one year useful life and costing $5,000 or more), capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, and fellowships, as well as the portion of each subcontract in excess of $25,000.

To determine when to use the On- or Off-Campus Rate, please read the following: When determining if a project is on- or off-campus, we consider only the ISU activities of the proposal. Therefore, all subcontract activities should be excluded for this determination. Only one F&A rate will be applied to the entire agreement, grant or contract.

On-Campus: A project is defined to be "on-campus" if 50% or more of the ISU activities are performed in facilities owned by ISU and/or to which rent is directly paid by ISU. In this case, the on-campus rate will apply to the entire project and the first $25,000 of each subcontract.

Off-Campus: A project is defined to be "off-campus" if 50% or more of the ISU activities are performed in facilities not owned by ISU and/or to which rent is directly allocated to the project(s). In this case, the off-campus rate will apply to the entire project and the first $25,000 of each subcontract.

Indirect Cost Policy at ISU June 2008

Facilities and Administrative Cost Rate Agreement (PDF File, 4 pages)

2008 Announcement of these rates (PDF File, 1 page)