Direct & Indirect (F&A) Administrative and Non-Salary Costs

• Meets all the tests for an allowable cost (see Sponsored Project Allowable and Unallowable Costs)
• Is allocable to the project. The cost can be identified specifically or logically with a particular sponsored project or program or can be directly assigned to such activity relatively easily with a high degree of accuracy; or the cost is incurred solely to advance the work under the sponsored project.
• Provides a clear and supportable benefit to the project

Examples of direct costs

• Salaries of scientific and technical staff
• Laboratory supplies
• Special purpose equipment
• Communication costs (project specific)
• Next Generation Network (NGN) charges
• Animals, animal care costs
• Computer costs
• Travel costs
• Specialized shop costs, materials, fabricated parts

• Is an allowable cost that doesn't provide a direct and identifiable benefit to a particular sponsored project or program
• Is incurred for common or joint cost objectives
• Includes costs that would normally be considered direct, but the cost of accounting for the direct charge would exceed the cost itself.

• The cost is extraordinary and required to be incurred by the project scope
• The cost can be specifically identified to the project
• The cost is explicitly budgeted in the award

Normal level of support

A normal level of support usually indicates an indirect cost. For instance, normally scheduled trash pickup is an indirect cost, whereas specially required waste removal services is a direct cost. Amounts in excess of the normal level of support may be a direct cost if identified as a cost that meets the criteria under a different purpose or circumstance. See Sponsored Project Costs: Different Purposes and Circumstances.

Awarding agencies

Each awarding agency has the right to establish its own terms and conditions for its awards. Specific award terms and conditions may take precedence over the provisions of UG. However, exceptions to basic costing principles and the usual accounting treatment as defined by UCSD should be brought to the attention of the SPF compliance officer for review and approval.

For example, even though paper and copying costs are typically administrative in nature and are therefore typically an indirect cost, a project that requires extensive paper and copying costs may be able to direct charge some or all of these extraordinary costs.
When expensed for usual purposes and under normal circumstances, costs listed below are charged as indirect costs (the services and support involved are a part of the normal level of support funded by UCSD and provided to all UCSD supported activities). Such costs indirectly benefit sponsored research.

• Building and grounds repair, maintenance and management, design and construction, trash removal, general purpose equipment repair, security, air conditioning, utilities, janitorial services
• Depreciation and use allowances on buildings, capital improvements, and equipment
• Interest expense on buildings, capital improvements, and equipment
• Plant facilities operations and maintenance
• Library costs
• Sponsored project administration
• Student administration and services
• General office furnishings: Copiers, faxes, desks, chairs, shelving, cabinets
• Dues and memberships: Business, professional, and technical organizations
• Books and subscriptions: Business, professional and technical periodicals, general interest books
• Advertising: General help wanted, recruitment
• Basic communication costs (non-project specific): Toll calls, telegrams, faxes, postage, messenger services, electronic/ computer transmittal services, campus mail services, line charges, equipment, installation, cell phones
• General and departmental administrative office supplies: Paper, pencils, paper clips, post notes, desk supplies, calculators, file folders
• General purpose publication/ document reproduction (low volume and non-project specific): Printing, promotion materials, page charges, routine departmental copying (ledgers, invoices, proposals, reports, correspondence)
• Computer support: General purpose equipment and related services, supplies (cables, cords, disks, toner)

These situations result in direct charging of costs that might otherwise be considered indirect. In many cases, the focus or intent of these projects budgets for and/or specifies the need for these types of costs:

• Administrative services for geographically inaccessible departments. Examples: Business support, telephone equipment, installation costs, and other service costs
• Computer access or specific upgrades beyond those normally provided to campus units
• Projects that involve extraordinary special requirements for security, facilities, materials, and supplies and other direct costs that are specifically identified with the project. Examples: Hazardous material removal, secured facilities, control of sensitive research data, telecommunication equipment charges, and equipment maintenance agreements for special purpose equipment.
• Research units with federally negotiated unique indirect cost rates and direct costing alternatives such as the Nimitz Marine Facility, Marine Physical Laboratory, and the General Clinical Research Center.
• Supplies and expense for activities that support an integral function of the project, which are inventoried and controlled for audit purposes
• Supplies for clinical activities and patient care, where the focus of the project is on such activity
• Paper, folders, and page charges for producing manuals, conference materials, human subject files, manuscripts, survey instruments, scientific data when such activity is a primary objective of the project
• Supplies for participants in an externally funded conference or seminar hosted by the campus. Example: Conference grants
• Materials for recording extensive patient (human subjects) data
• Materials in support of extensive outreach and educational activities, such as those needed by the CREATE project
• Postage, messenger, mail stop charges required for mass mailing or survey collection, patient follow-up letters, or mailing scientific materials
• Cellular phones for projects requiring round-the-clock activity monitoring
• Costs related to sponsoring agency requirements that vary from normal UCSD costing practices

Typical example

A Typical example of a different purpose and circumstance is when a particular project requires specific and identifiable support that is over and above the level of support provided and charged indirectly to all activities. These incremental costs are considered direct because they are not incurred for the same purpose as the common costs.