FAQ: Facilities & Administrative (F & A) Costs on Sponsored Projects

Facilities & Administrative (F & A) costs, sometimes referred to as indirect costs, are costs incurred for common or joint objectives and therefore are not readily identifiable with a particular sponsored project, an instructional activity or any other institutional activity. Because these are actual (real) costs of doing business, we seek their recovery from grant awards in the form of F & A costs.

Facilities costs can include, but are not limited to, utilities, custodial services, plant operations such as heating and cooling services, and maintenance expenses. Administrative costs can include, but are not limited to, payroll and accounting services, office supplies, departmental administration, procurement services, library services and sponsored projects administration. An example of an administrative cost might be a portion of the salary for a payroll clerk who processes biweekly and monthly payroll for an employee being paid from a grant. A portion of that clerk’s time is indirectly benefiting the grant.