Tag: indirect costs

## Indirect Costs: The Basics

What are indirect costs? Imagine your district has received a reading grant.  The grantor is providing funding for a teacher and instructional materials.  Indirect costs are all those additional costs associated with running the grant.  These will be hiring costs for the teacher, including recruitment, fingerprinting, and credential analysis.  When the teacher puts in an order for

## Indirect Costs When Revenue is not Fixed

I wrote about the so called magic formula for budgeting indirect costs on a fixed amount grant.  This calculation uses the grant revenue amount to determine how much of the grant you can budget to spend and how much needs to be set aside for indirect costs. However it is important to remember – actual indirect

## Carryover Complications

Say a school is allotted \$20,000 (with carryover allowed) and they only spent \$15,000.  The carryover amount is: a) \$5,000 b) something else Often the answer is b) “something else” This is because the central office will usually give the school site the net award amount – i.e. the award minus the indirect cost on the

## Calculating Indirect Costs – The “Magic” Formula

Question: Your district has received a grant for \$100,000.  The indirect cost rate is 5%.  What is the indirect cost amount for this grant? Answer: a) \$5,000 b) Something else And, the answer is ….. b) Something else Explanation: The real question here is, how much of this grant can you spend on items other