Elimina-

Indirect

Direct

Project A

Project B

Project C

(4)

Salaries & Wages

Total

tions

Costs

Costs

NSF

DOE

NASA

IR&D

70,000

25,000

45,000

15,000

5,000

15,000

10,000

J. Brue, Sr. Scientist

65,000

15,200

49,800

23,800

10,000

8,000

8,000

P. Dent, Engineer

60,000

4,800

55,200

0

40,000

10,000

5,200

C. Kipe, Scientist

50,000

4,000

46,000

30,000

12,000

4,000

S. Smith, Typist

30,000

12,400

17,600

10,000

6,000

1,000

600

M. Jones, Accounting

45,000

45,000

0

0

0

0

0

Total Salaries & Wages

320,000

106,400

213,600

78,800

73,000

34,000

27,800

(3)

(B)

24,480

24,480

Health Insurance

28,000

28,000

Consultant Fees

49,000

3,000

46,000

13,000

27,000

3,750

2,250

Depreciation

10,000

10,000

Entertainment/Penalties

3,500

3,500

Equipment

23,000

23,000

Legal & Accounting

5,000

5,000

Materials & Supplies

20,000

1,500

8,500

9,400

2,500

900

5,700

Office Supplies

2,000

2,000

Computer Services

6,500

1,000

5,500

4,500

1,000

Postage & Telephone

1,500

1,500

Printing & Publication

3,000

400

2,600

1,400

700

500

Rent

12,000

12,000

Utilities

2,400

2,400

Travel

6,000

600

5,400

3,600

800

750

250

Subawards

95,000

95,000

Total  Expenses

611,380

121,500

198,280

291,600

110,700

105,000

39,900

36,000

(1)

 (2)      

(A)

(C)

Indirect Cost Pool (divided by) 

(1)

Indirect cost proposal should be based on actual cost data for the most current ended accounting year and should be submitted with the financial statements (F/S) for that year.  The total amount of expenses per the indirect cost proposal should be reconciled to the total expenses reported in the F/S.  A second “budgeted” indirect cost proposal(s) should be provided if it is expected that the indirect cost rate will change significantly during the actual period of the award (if covering more than one acounting year, a proposal should be provided for each year). Where projected costs in any particular cost category have significantly increased, an explanation for the increase should be provided.

(2)

Both direct costs and indirect costs shall exclude capital expenditures. Unallowable costs are also excluded, unless they 1) include the salaries of personnel, 2) occupy space, and (3) benefit from the organization’s indirect costs;  in which case they are included as a direct cost (see applicable cost principles which identify other unallowable costs). Distorting items such as subawards and participant support costs should be excluded from the distribution base.

(3)

Fringe benefits, including FICA, non-work time, health, etc., in this example are included in the indirect cost pool and therefore would not be proposed as a separate direct cost element. (Although not separately itemized, vacation, holiday and sick are included in the indirect salaries and wages amounts in this example.)  It can be appropriate, however, to segregate fringe type costs and allocate these costs to direct and indirect salary and wage categories in determining total indirect and direct amounts.  It would then be appropriate to propose fringe benefits as a separate rate applied to direct salaries and wages.