In simpler terms, indirect costs are costs that cannot be easily identified with a particular project or organizational activity, but are incurred for the common benefit of projects and other activities. Indirect costs are typically grouped into common pools and charged to beneficiary targets through an indirect cost allocation/rate process. CU Boulder calculates the indirect costs of sponsored projects in accordance with our indirect cost agreement negotiated by the federal government. Your proposal analyst will ensure that the corresponding indirect costs are credited to your sponsored project`s budget. We hope that this situation will be relatively short-lived and that most sponsored project proposals are valid for periods of more than one year, so that all budgets for sponsored project proposals include an assessment of the full amount of indirect costs authorized by the proponent at the rates applicable in our federally negotiated indirect cost rate agreement. Commercial (for-profit) organizations usually treat “ancillary services” as indirect costs. These benefits apply to direct salaries paid to projects, either through a perk benefits rate or as part of an overhead or indirect cost rate. Therefore, ancillary services treated as indirect costs should not be included as direct costs in the “personal” category of the grant application budget form or in a contract proposal. The indirect cost rate of CU Boulder is negotiated with the Department of Health and Human Services (DHHS), and this is the rate we must use for sponsored project budgets. It is extremely important that CU Boulder receives full reimbursement of indirect costs to the extent possible. CU Boulder recognizes that many sponsored project staff are still working remotely during our response to the covid-19 crisis. Please note that this work is not eligible for an off-campus indirect cost rate. Here are some examples* of indirect costs (Q&A): Current Q&A rates, Q&A rate history and collective agreement on the Controller`s Website Office Understanding Facilities and Administrative (Q&A) Costs Handout website for more information on what is included in the Q&A costs DESCRIPTION – A final rate is a permanent rate that is set after an organization`s actual cost for a year in course is known….