Northern Michigan University (NMU) negotiates an indirect cost rate agreement with the federal government to recover the costs of facilities and administrative support for sponsored projects. Facilities and administrative (F&A) cost recovery rates are based on actual costs the university has incurred. F&A recovery supports general institutional costs that are incurred for common and joint objectives. These are real costs that cannot be readily fixed to a particular project or activity, so they cannot be charged directly. However due to the very real expense incurred by NMU, efforts to recover funds available to address said costs is vital to continued efficient and responsible function of sponsored projects efforts.

All faculty and staff

Northern Michigan Unviersity will maximize full recovery of Facilities and Administrative (F&A) costs to every extent possible. Limited or excluded F&A on any proposal request to a sponsoring agency will be authorized - by appropriate Vice President or President - only when the agency requires such limitation. Additional guidance for distribution of Indirect Funds generated on externally funded awards can be found in the distribution policy (Grant Or Contract Generated Indirect Funds Policy).

Specific procedures relating to this policy are outlined in the NMU Facilities & Administrative (Indirect) Costs procedure. Controller's Office and Grants and Contracts Office are authorized to edit these procedures.