University Controller's Office
Cost Analysis

DHHS Colleges & Universities Rate Agreement

The purpose of an indirect cost rate agreement is to publish the reimbursement rate(s) negotiated between the federal government and a grantee organization which reflects the indirect costs (e.g.; facilities and administrative costs) and fringe benefit expenses incurred by the organization in the conduct of federal programs. The rate agreement includes, but is not limited
to identifying the type of rate(s) negotiated, the effective period(s) of the rate(s), the rate expressed as a percentage, the location to which the rate is applicable, and to what programs the
rate is applicable to. It also defines the base(s) used to develop the rate(s), the treatment of fringe benefits and paid absences, and the capitalization level for equipment.