The Recovery of Indirect Costs

EXAMPLE:

Grant Funds Available                                     $1,000,000
Administrative Cost Limitation at 15%                $150,000
Direct Program Administrative Cost Incurred     $112,500
Indirect Cost Reimbursement(1)                           $37,500
                                                                        $150,000

COMPUTATION OF INDIRECT COST REIMBURSEMENT:

Total Direct Salaries and Wages Incurred on Grant/Contract    $225,000
Negotiated Indirect Cost at a Rate of 20%                                  $45,000