Indirect Cost Policy
Approved by: President's Cabinet
Original Date Effective: 2014-01-01
Last Modified: 2024-03-25
Purpose:
The purpose of this policy is to establish Jackson State Community College Policy on the establishment and handling of indirect cost.
Definitions:
Direct cost – cost that can be identified specifically with a particular project or activity and are allowable under the award.
Indirect cost- also known as facilities and administrative costs or overhead are intended to offset the portion of facilities (buildings, utilities, insurance, etc.) and administrative cost (payroll, purchasing, administration, etc.).
Policy/Procedure:
Jackson State Community College (JSCC) has a negotiated approved Indirect Cost Rates (IDCR, F&A rate, indirect cost). These predetermined rates (on-campus and off-campus) were approved by our cognizant agency, the Department of Health and Human Services. The rates are for use on grants, contracts, and other agreements with the Federal Government. The rates can also be used on non-federal entity awards, if allowable.
The Indirect Cost Rate Agreement covers a period of three (3) years, i.e., July 1, 2013 through June 30, 2016. The rate is based on modified total direct cost (MTDC). The rate can be applied to total direct cost excluding capital expenditures (e. g. buildings, equipment costing $5,000 or more, alterations and renovations) and sub-awards.
The on-campus rate shall be used when the majority of the project occurs in buildings owned by JSCC. The off-campus rate shall be used when the majority of the project occurs in buildings not owned by JSCC.
Some agencies restrict the amount of indirect cost that can be applied to an award. Other agencies may not allow any indirect cost to be charged to the awards. If noted in the Announcement of Funding, Request for Proposal, agency policies, or other notifications then JSCC may waive the indirect cost. JSCC normally accepts theses terms prior to submission of any proposals. Indirect cost should not be waived for any other purpose unless approved by the President or his/her designee.
Indirect cost is calculated in accordance with the invoicing cycle (monthly or quarterly). However, the calculation will be made no less frequent than quarterly.
Indirect Cost Distribution
It is the College policy to apply recovered indirect cost to its general fund. A percentage of the recovered funds may be requested by the department receiving the award to be used for line items not fully funded or covered in the award (e.g., personnel expense or equipment cost).