Program Expenditures

What are program expenditures and how are they classified?

Direct Program Expenditures
Costs which can be specifically identified with a particular project, program, activity or sponsored account. (Examples are salaries, supplies, equipment, lab costs, etc.)
An expense is allowable if it meets all of the following criteria:

  • The cost is directly related to the Project
  • The cost is identifiable to the project purpose
  • The cost is reasonable
  • The cost is necessary
  • The cost is consistently treated
  • The cost is allocable
  • The cost is not specifically prohibited by the funding source or University

F & A costs (Indirect Costs)
Costs which can’t be readily and specifically identified with an exact project, program or activity but which provide an overall benefit to the sponsored agreements.(Examples: building, utilities, grounds and maintenance, Human Resource services, Central administrative services, telephone, network access, etc.)

F &A rates are based on actual expenditures incurred by the institution. The rates are established through a combination of audit and negotiation mechanisms with the University cognizant agency and applied consistently to each sponsored award. Through this negotiation process, multiple rates are established for on campus and off campus.
(Emory’s cognizant agency is DHHS) and applied consistently to each sponsored award. Through this negotiation process, multiple rates are established for on and off campus activities.