Body
Issue/Question
Which expenses should be excluded from indirect costs on sponsored project awards?
Environment
- Sponsored Project Awards
- Expenses
- Modified Total Direct Cost (MTDC
Resolution
- For federal awards, the negotiated federal IDC rate, called Modified Total Direct Cost (MTDC), excludes the following expense categories:
- Equipment
- Capital expenditures
- Patient care
- Tuition remission
- Rental of off-site facilities
- Scholarships and fellowships
- Subcontracts in excess of $25k each
- Participant Support Costs
- Other Awards
- For all other awards, the IDC rate and exclusions vary
- After receiving the award, Sponsored Projects Finance (SPF) reads the award document and sets up the IDC rate and exclusions in the accounting system
- Always refer to your award documents for specific exclusions
Note: Award agreements dictate which expenses are exempt from indirect cost (IDC) charges.