Facilities & Administration Costs

Facilities and Administrative costs (F&A; also referred to as indirect costs or overhead) are those costs associated with the conduct of sponsored activities that are incurred for common or joint objectives and therefore are not readily identifiable with a specific project. Examples of costs normally considered to be F&A costs include administrative/clerical; facilities management and utilities; general-purpose equipment; office supplies; postage; memberships and dues; subscriptions/books/periodicals and local telephone charges. For additional information/guidance see 2 CFR 200 (section E).

F&A Indirect Cost Proposal

As a recipient of Federal contracts and grants, NC State is required to periodically prepare and submit a Facilities and Administrative (F&A) rate proposal to the U.S. Department of Health and Human Services­ Cost Allocation Services. F&A recovery from our sponsors is an important revenue stream to the University.


Investigation or experimentation aimed at the discovery of new knowledge or that builds upon existing knowledge. The creation of new knowledge and/or the use of existing knowledge in a new and creative way resulting in new concepts, methodologies and understandings.

  • Organized Research – Research, development and scholarly activities targeted for discovery and new knowledge development that are separately funded, budgeted and accounted for. This category is comprised of ledger- 4 and 5 project IDs that generally carry NCSU financial system program code 110 (Organized Research) or 122 (Agricultural Research Service) and include Sponsored Research and University Research. 
  • Departmental Research – Research, development and scholarly activities that are not organized research as defined above. Departmental Research is supported via an allocation of institutional controlled funds, excludes ledger- 4 and 5 project IDs and specific initiatives are not generally separately budgeted and accounted for.

Institutional services involving teaching and non-research training activities in which knowledge, expertise and skill accumulated by faculty members through scholarly efforts are transferred to students. In addition to Regular Term, Summer Term, Veterinary Medicine and Non-Credit & Receipt-Supported Instruction, this category includes Sponsored Instruction and Departmental Research.


Modified Total Direct Costs defined in the Uniform Guidance under 200.68. Direct charges such as tuition, scholarship and fellowship costs, participant support costs, capital expenditures, equipment greater than $5,000, and each subcontract budgeted amount beyond $25,000 are excluded from the basis of computing facilities and administrative costs.