9.5 Distribution of Grant Indirect Costs

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Chapter 9: Grants and Sponsored Projects

9.5 Distribution of Grants and sponsored projects

Related Minnesota State Board Policy: 7.7 Gifts and Grant Acceptance
Related Minnesota State Board Procedure: None

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

Part 1: Definitions

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.

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Part 2: Determination of Indirect Rates

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.

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Part 3: Distribution

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.

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  Policy History:
Date of Adoption:  Established 11/2016
Date of Implementation: 12/2016
Date and Subject of Revisions:
Next Review Date:  2019-2020
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