• Term Definitions

    Direct Costs are those costs which are directly identified with a particular project/grant and with a specific item, instructional activity, or other objective within the grant.

    Indirect Costs are those costs of a grant which are not readily and/or specifically identifiable with a particular project or activity but are necessary to the general operation of the project or activity. Costs of this nature are typically referred to as overhead and include such costs as program administration, building use and maintenance, equipment use, general and departmental administration salaries, etc. Federal law, as documented in the Federal Register, allows for the payment of indirect costs by a grant to the agency primarily responsible for the administration of the grant, in this case Brighton School District 27J. Most grant applications must also budget for indirect costs incurred by Brighton School District 27J for the general operation/administration of the grant. Indirect Costs are figured as a percentage of total grant expenditures. For the current rate look on the Grant Award Notification page towards the middle. This percentage is calculated by the Colorado Department of Education.

    Indirect Cost Rate* is the ratio of indirect costs to direct costs, expressed as a percentage. Indirect costs are those elements of cost necessary in the provision of a service which are of such nature that they cannot be readily or accurately identified with the specific service. When grant proposals are written, you should contact the Grant Accountant for the correct rate to use. Exception to this payment must be stipulated in the grant application.

    *If you have charged administrative costs to your individual grants, you CAN NOT use indirect cost rates, as this is "double dipping."

    Direct costs are those elements of cost which can be easily, obviously, and conveniently identified with specific activities or programs.

    Allowable Costs are all costs that are approved by the grantor for the purpose of the operation of the grant.
    Unallowable Costs are expenditures made by a grant that are not reimbursable by the grantor. Likewise, unallowable costs will not be reimbursed by School District 27J. These costs include, but may not be restricted to, sales taxes, bad debts, contingencies, fines, and any unallowable costs incurred by a grant.
    Fringe Benefits All grant applications must include the costs of fringe benefits for all anticipated personnel. This cost is based on a percentage of total salaries.