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% 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