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performance of those awards. <br />performance of those awards. <br />b. Cost of materials acquired, consumed, or expended specifically for the purpose of those <br />aterials acquired, consumed, or expended specifically for the purpose of those <br />b. Cost of b. Cost of <br />m <br />awards. <br />awards. <br />c. Equipment and other approved capital expenditures. <br />c. Equipment and other approved capital expenditures. <br />d. Travel expenses incurred specifically to carry out the award. <br />d. Travel expenses incurred specifically to carry out the award. <br />3. Minor items. Any direct cost of a minor amount may be treated as an indirect cost for reasons <br />3. Minor items. Any direct cost of a minor amount may be treated as an indirect cost for reasons <br />3. Minor items. Any direct cost of a minor amount may be treated as an indirect cost for reasons <br />of practicality where such accounting treatment for that item of cost is consistently applied to all <br />of practicality where such accounting treatment for that item of cost is consistently applied to all <br />of practicality where such accounting treatment for that item of cost is consistently applied to all <br />cost objectives. <br />cost objectives. <br />F.Indirect Costs <br />1. General. Indirect costs are those: (a) incurred for a common or joint purpose benefiting more <br />than one cost objective, and (b) not readily assignable to the cost objectives specifically <br />benefitted, without effort disproportionate to the results achieved. The term "indirect costs," as <br />used herein, applies to costs of this type originating in the grantee department, as well as those <br />incurred by other departments in supplying goods, services, and facilities. To facilitate equitable <br />distribution of indirect expenses to the cost objectives served, it may be necessary to establish a <br />number of pools of indirect costs within a governmental unit department or in other agencies <br />providing services to a governmental unit department. Indirect cost pools should be distributed to <br />benefitted cost objectives on bases that will produce an equitable result in consideration of <br />relative benefits derived. <br />2. Cost allocation plans and indirect cost proposals. Requirements for development and <br />submission of cost allocation plans and indirect cost rate proposals are contained in Attachments <br />C, D, and E. <br />3. Limitation on indirect or administrative costs. <br />a. In addition to restrictions contained in this Circular, there may be laws that further limit the <br />amount of administrative or indirect cost allowed. <br />b. Amounts not recoverable as indirect costs or administrative costs under one Federal award <br />may not be shifted to another Federal award, unless specifically authorized by Federal legislation <br />or regulation. <br />G.Interagency Services. The cost of services provided by one agency to another within the <br />governmental unit may include allowable direct costs of the service plus a pro rate share of <br />indirect costs. A standard indirect cost allowance equal to ten percent of the direct salary and <br />wage cost of providing the service (excluding overtime, shift premiums, and fringe benefits) may <br />be used in lieu of determining the actual indirect costs of the service. These services do not <br />include centralized services included in central service cost allocation plans as described in <br />Attachment C. <br />11 <br /> <br />