Inside Linfield - Policies and Procedures

Indirect cost policy

Indirect costs, also known as facilities and administrative costs (F&A costs), are the institutional or infrastructure costs of managing and running programs that cannot be directly attributed to a program or activity. These costs include items such as printing, equipment use, accounting, utilities, professional development, security, library services, ITS, and administrative costs that are hard to calculate but are true costs for running programs. The indirect cost rate reimburses the university for that fraction of its indirect costs that the granting agency agrees to bear. Federal agencies require colleges and universities to use rates negotiated with a government entity. In the case of Linfield University, this institution's negotiation partner is the Department of Health and Human Services.

Indirect cost calculation

In developing budgets for submission, applicants at Linfield University are to calculate project costs using the following rates.

Federal agencies (e.g., National Science Foundation)

  • 15% rate applied to all direct costs for requests in support of projects that take place off campus

  • 37% rate applied to all direct costs for requests in support of projects that take place on campus

  • 38% rate for calculating fringe benefits for project personnel excepting students, adjuncts, and part-time and temporary staff

Although indirect expenses are recognized as real costs, some federal funding agencies (e.g., National Endowment for Humanities) will not provide full reimbursement of indirect costs. Given this reality, applicants should strive to recover the maximum indirect costs allowable by the granting agency.

Non-federal agencies (e.g., private foundations)

  • 10% rate or the highest amount allowed for requests to agencies that permit indirect cost recovery

Approval Required to Use Different Rate

All grants and contracts that will require the university to absorb the indirect cost must be discussed with the Director of Grants and Sponsored Research in Institutional Advancement.

Indirect cost distribution

Indirect cost amounts generated by charges to research grants and contracts will be transferred from restricted funds as follows:

  • 50% - Linfield University general budget
  • 50% - Academic Affairs

Funds deposited to the general university budget will be used at the discretion of the Vice President for Finance and Administration/Chief Financial Officer. Funds deposited to an Academic Affairs account will be used at the discretion of the Provost/Vice President for Academic Affairs.

For more information about this policy, please contact Carroll Deason, Director of Grants and Sponsored Research at or Carol Stowell-Heller, Grants Accounting Manager at