Updated Indirect Cost (IDC) Rate – Effective 7/1/2024
Indirect Costs (IDC), also known as Facilities & Administrative (F&A) Costs, are expenses that support the overall operation of an institution but are not directly attributable to a specific project. Common IDC categories include administrative support (Post-Award staff), Accounting and Payroll services, research labs and specialized facilities, insurance coverage, and independent audit services. If you’re wondering what indirect costs cover and how they originated, this short video might be of interest to you.
The Cal Poly Humboldt Sponsored Programs Foundation (SPF) has a federally negotiated IDC rate approved by our cognizant agency, the U.S. Department of Health & Human Services. This rate is periodically renegotiated and applies to federally funded projects across all agencies. The IDC rate negotiation process is lengthy and typically takes up to a year to complete; our agreement was initiated in November 2023 and, following the standard federal timeline, was finalized in March 2025.
Effective July 1, 2024, the new indirect cost rates are:
- 45% for all on-campus programs
- 26% for all off-campus programs
These rates will apply to new proposals moving forward. Proposals routed or submitted before July 1, 2024, will be adjusted to the new lower rate during award negotiations by your Pre-Award Specialist.
This change will also apply retroactively to existing federal projects with an IDC rate above 45% and a performance period starting after July 1, 2024. In these cases, our office will soon contact Principal Investigators to discuss the re-budgeting process to adjust indirect costs accordingly.
Our Institutional Routing Form (IRAF) and internal budget templates will be updated accordingly. As a reminder, any proposal requesting an IDC rate lower than the federally negotiated rate must receive prior approval from SPF as part of the Institutional Routing process.
For questions regarding indirect costs and how they may impact your proposals, please contact one of our Pre-Award Specialists:
- Pia Gabriel – pg12@humboldt.edu
- Jocelyne Takatsuno - jt366@humboldt.edu
- Kaz Wegmuller - jkw77@humboldt.edu
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