Indirect Cost Reduction Approval Form

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Indirect costs are those costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project. The federal government uses “Facilities and Administration (F&A)”, while other funding entities use “overhead” or “administration” as a synonym for indirect cost.

If the funding agency has a published policy that limits the indirect cost to a percentage below 38.4%, please indicate this on the internal routing form (the Project Information Form or PIF), provide written documentation (usually a copy of the funding source’s written policies), and use the maximum allowed rate. NOTE: The State of California, private companies and foundations often use an alternative indirect rate of 15% of total direct costs. Attach the published policy from the funding agency to the PIF.

If less than the maximum allowed by the funding agency is submitted for funding, attach to the PIF an “Indirect Cost Reduction Approval Form” signed by the Dean, the Provost or the Associate Vice President for Research and Sponsored Programs (AVPRSP).