This FAQ addresses the question of whether employers can pay an employee from both the indirect rate and directly from the funding source. Because of the complexity of this issue, CAAs may find it useful to discuss its position with its independent auditor–and possibly fiscal staff at the government funding source(s) involved, if their fiscal monitoring is particularly thorough–to be sure that they are in agreement.

Cost Allocation Toolkit
When federally funded organizations incur shared costs that benefit multiple funding awards it can be difficult to determine how much to charge each award for those costs. Allowable methods of shared cost recovery vary, and organizations weigh factors such as size,...