This section provides details to assist both CoC and ESG programs better understand indirect costs and how they can be calculated and charged under these programs. For more information, please see the HUD Indirect Cost Toolkit for CoC and ESG programs.
All costs can be classified as either ‘direct’ or ‘indirect,’ and the cost type governs how they are allocated. The following are examples of direct and indirect costs:
Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?
Direct costs are those that can be specifically identified with a particular award or activity relatively easily with a high degree of accuracy. Identification with the federal award rather than the nature of the goods and services involved is the determining factor in distinguishing direct from indirect costs of federal awards.
Indirect costs are those that have been incurred for ‘shared’ or ‘joint’ objectives and cannot be readily identified with any particular activity. After direct costs have been determined and assigned directly to federal awards, or other work as appropriate, indirect costs are those that remain to be allocated.
Due to the diverse characteristics and accounting practices of non-profit organizations, it is not possible to specify the types of cost that may be classified as indirect cost in all situations. However, a cost may not be allocated as an indirect cost if any similar costs have been assigned as a direct cost.
State/local governments’ indirect costs are normally charged to federal awards by the use of an approved indirect cost rate. A separate indirect cost rate(s) is usually necessary for each department or agency of the governmental unit claiming indirect costs under federal awards.
Eligible Activities:
Eligible Activities:
Environmental
Financial Management:
Grant Administration:
Homeless Eligibility:
Leasing and
Match:
Program
Program
Rent Calculation:
UFA: CoC
Additional