Indirect Costs & Fringe Benefits

Indirect Costs

Indirect Costs, Overhead, or Facilities and Administrative Costs (F&A Costs) are costs that are incurred in conducting or supporting research or other externally-funded activities that cannot be directly attributed or efficiently charged as direct costs to a specific sponsored project. General categories of these types of expenses are general administration costs (i.e. accounting, payroll, purchasing), sponsored project administration costs, utility costs, depreciation, building maintenance, etc.

The amount of indirect costs charged to an award is based on a rate that normally reflects Wellesley College's current negotiated and federally approved rate. This rate is periodically renegotiated with the Department of Health and Human Services and applied to a specific pool of costs. Occasionally, if the terms of an award require, a different rate will be applied based on negotiations during the pre-award stage of the award.

Our current Federally negotiated F&A Cost Rates are:

Year
Type
Rate
Applied to
FY14-FY17 On Campus 75.30% Salaries & Wages
FY14-FY17 Off Campus 15.10% Salaries & Wages
FY11-FY13
On Campus
79.00%
Salaries & Wages
FY11-FY13
Off Campus*
17.60%
Salaries & Wages
FY08-FY10
On Campus
77.00%
Salaries & Wages
FY08-FY10
Off Campus*
15.40%
Salaries & Wages
FY05-FY07
On Campus
73.00%
Salaries & Wages
FY05-FY07
Off Campus
14.00%
Salaries & Wages
FY02-FY04
On Campus
69.00%
Salaries & Wages
FY02-FY04
Off Campus
14.00%
Salaries & Wages
FY99-FY01
On Campus
65.00%
Salaries & Wages
FY99-FY01
Off Campus
13.30%
Salaries & Wages


* Off-Campus refers to activities performed in facilities not owned by Wellesley College and to which rent is directly allocated to the project. If more than 50% of a project is performed off-campus, the off campus rate will apply to the entire project.


Fringe Benefits

Along with the Indirect Cost Rate, a Fringe benefit rate can also be applied to a sponsored award. The Fringe Benefit Rate charged to a grant fund will be determined by the source of the funding and the type of employee being paid.

Each year the College revisits the fringe benefit rate it charges to College funds. This rate is based on the actual costs of benefits provided by the College and the amount of salaries paid to benefited and benefited employees. However, the fringe rate we are allowed to charge to Federal awards is only renegotiated periodically at the same time the Indirect Cost Proposal is submitted. In addition, the two rates differ in what benefits can be included in the fringe rate calculation (i.e. the federal rate does not allow for certain tuition benefits to be included). As a result, we are faced with having to use two different Fringe Benefit rates.

The current Fringe Benefit rates charged to Sponsored Awards are:

Employee Type Funding Source Fringe Rate
FT Benefited
Government Awards
33.87%*
FT Benefited
Non-Gov't Awards
33.87%

PT Employees(No Benefits)

All Awards
7.70%
Students-Summer**
All Awards
7.70%

*   The current negotiated Federal Fringe Benefit rate for FY14-FY17 for the College is 35.08%. Because the calculated FY15      Fringe Benefit rate for the College (33.87%) is lower than the federally negotiated rate, the College will use the lower rate      for FY15 on all government-sourced awards (through June 30, 2015).

** No Fringe benefits are charged on Student Payroll during the Academic Year (Sept - May).

Government awards include all federal, state, and local government sourced awards.

Questions regarding the Indirect Cost Rate and the Fringe Benefit rate should be referred to Jim Sullivan in the Controller's Office.

What's New?

FY14 Financial Statements - to be updated soon with official Annual Report

FY14 Closing Memo

FY13 A-133

990

 

 

Contact Us

Controller
 

Mailing address:
Wellesley College
Controller's Office
106 Central St., GRH139
Wellesley, MA 02481-8203

Main Telephone:
781.283.2468

 

Main Office Fax:
781.283.3710

Payroll Fax:
781.283.3713

AVP for Finance, Controller and Assistant Treasurer
781.283.2247
 
Senior Accountant
781.283.2461
 
Accounting Specialist
781.283.2488
 
Sr. Cashiering/Payroll Specialist
781.283.2265
 
Accounts Payable Manager
781.283.2469
 
Associate Controller
781. 283.2250