Purpose:  To define the process for recovering and allocating indirect costs on grant-funded projects.

Subpart A: Indirect Costs are defined as funds recovered from external grants awarded to the college. They are intended to cover costs that are incurred for the general operation of the college that cannot be readily identified with a specific grant-funded activity.

Subpart A: The funding entity normally defines the methodology for determining indirect cost rate.

Subpart B: If the funding entity does not provide such a definition, the college will use the Federal Indirect Cost rate established for the college.

Subpart A: Funds received as indirect costs from grants will be allocated between the department or division initiating the grant (50%) and a general fund cost center for grants and sponsored projects (50%).

Subpart B: Exceptions to this distribution must be approved by the President. If an alternate distribution is part of a grant proposal, pre-approval by the President is required.