Can an Employee be Paid from an Indirect Rate and Directly?

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Cost Allocation, Financial, Indirect Costs, Uniform Guidance

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Executive Director, Finance Director

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2014

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.

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