Items Ordinarily Unallowable as Direct Costs

Salaries of Administrative and Clerical Personnel – The salaries of administrative and clerical personnel are normally treated as an indirect cost unless they meet the definition of “unlike purpose and circumstance” and are integral to the award. As stipulated in the Uniform Guidance, direct charging of administrative salaries is allowable when all of the following 4 conditions are met:

  • Administrative or clerical services are integral to a project or activity;
  • Individuals involved can be specifically identified with the project or activity;
  • Such expenses are explicitly included in the budget or have the prior written approval of the federal awarding agency; and
  • The costs are not also recovered as indirect costs.
  • NOTE:  if the item is not included in the awarded budget or the proposed budget narrative, OSP approval post award is required.