Indirect Cost

Indirect Costs

Indirect costs include Facilities & Administrative (F&A) and Fringe Benefit Rate 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.

Fringe Benefit Rate clusters fringe benefits paid by the University for its employees. It includes benefit costs such as health, dental, life insurance, etc. For more information, see Fringe Benefit 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 than 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 (22, 26, 28, 29) and their renewal and replacement plant fund (78) and to agency funds (80)

Current GAR Rate

The current GAR rate is 9% for auxiliary and self-funded operations (20, 26, 28, 29) and their renewal and the replacement plant fund (78). The current GAR rate is 2% for agency funds (80).

Resources

• F&A Rate
• Fringe Benefit Rate

Last Reviewed on 12/10/2024