ERIC Number: ED203917
Record Type: RIE
Publication Date: 1976-Dec
Reference Count: 0
Indirect Costs: An Introduction for the Community College Development Officer. Resource Paper No. 12.
Flower, Judson H.
As an informational aid for community college development officers, this report describes the process of applying to the Department of Health, Education, and Welfare (HEW) for funds to cover the indirect costs associated with federally sponsored college programs. The report argues that while more community colleges should avail themselves of indirect costs funding, the preparation of an Indirect Cost Proposal is a costly process which requires the expertise of college business officers and which should be undertaken only if the college is receiving a federal award with an indirect cost component. The report then draws from HEW guidelines to distinguish between direct and indirect costs and to define six indirect cost categories: general administration, research administration, operations and maintenance, library operations, departmental administration, and student administration and services. "Long" and "abbreviated" forms used in itemizing allowable indirect program costs are discussed prior to an explanation of the final Indirect Cost Rate, which is agreed upon after negotiations with HEW. This rate is determined by dividing allowable indirect costs by total direct costs and using the resulting ratio to determine the dollar amount to be added to the federal award in order to cover indirect costs. The report concludes with a sample of a completed "abbreviated" form. (JP)
Publication Type: Guides - Non-Classroom
Education Level: N/A
Authoring Institution: National Council for Resource Development, Washington, DC.
Identifiers: Department of Health Education and Welfare