ACCOUNTING FOR DIRECT AND INDIRECT COSTS - 8757-JUN-1985

(Revised: 06/1985)

(Revised and Renumbered from 8753.3 6/85)

Departments will account for reimbursements, including receipts from the federal government, according to the following cost categories:

• Direct costs;
• Departmental indirect costs; and
• Central service costs.

Accountability by these cost categories encourages full cost recoveries including a fair share of central service costs.

Departments will establish subsidiary accounts for:

• Direct cost recoveries
• Departmental Indirect cost recoveries
• Central service cost recoveries

These accounts will be subsidiary to Account Number 8020–Federal Grants and Contracts, or Account Number 8100–Reimbursements, depending on the fund in which these monies are accounted.