Facilities and Administrative (F&A) costs

Facilities and Administrative (F&A) costs, often called indirect costs, are expenses institutions incur to support research and projects that aren't directly tied to a specific activity. This includes expenses like utilities, maintenance, administrative staff, and facility depreciation. These costs enable the organization to maintain a safe, functional environment and manage resources efficiently. When grants or funds are awarded for research, a portion covers these indirect costs to ensure the institution can sustainably support the project alongside other essential operations.