Indirect Cost

What are Indirect Costs? These include Facilities & Administrative (F&A) and General Administrative Recharge (GAR) costs. F&A includes costs related to providing and maintaining the infrastructure that supports sponsored research.  These costs are not items which can be easily identified as being part of a specific project.  For more information, see F&A Rate

GAR are overhead charges that the university levies on self-supporting operations, primarily Auxiliary fund groups, which benefit from central campus services and support.  The rate is determined by the Budget Office.  Sharing self-supporting operations for central support and services is common practice in Higher Education since this overhead charge supports the notion that an auxiliary is to be self-supporting.  Overhead charges generally include accounting, human resources, budget office, a portion of IT, and CU-system services.  GAR proceeds come into the general fund and are used to cover these general administrative costs. 

What Funds does GAR get allocated to? GAR is charged on a monthly basis to auxiliary and self-funded operations (20, 26, 28, 29) and their renewal and replacement plant fund (78) and to agency funds (80) 

What is the current GAR Rate?  The current GAR rate is 8.5% for auxiliary and self-funded operations (20, 26, 28, 29) and their renewal and replacement plant fund (78).  The current GAR rate is 2% for agency funds (80).

 

Last Reviewed on 10/4/2017