Participant Support, Scholarships and Support Costs

Under the modified total direct costs rate, indirect costs are not assessed on:

  • Capital equipment
  • Charges for patient care
  • Tuition remission
  • Rental costs of off-site facilities
  • Scholarships
  • Fellowships
  • The portion of each subgrant and subcontract in excess of $25,000

In regard to scholarships and fellowships, to be exempted from indirect costs upon expenditure, the following account codes must be used:

  • 5708 – Grant and aid to other than students
  • 5709 – Support – Students, fellows, scholars, and trainees
  • 5710 – Support – Non-employees and non-registered UW students
  • 5711 – Student aid / Scholarship awards – excluding loans

For detail about each account code, see Business Services information. For specific questions regarding the detail of each code, please contact your SMPH accountant

In proposal preparation, budget detail must clearly indicate the types of support being proposed. The proposal should clearly designate the type of support being requested as scholarships/ support payments to justify the exclusion of indirect costs.  At point of expenditure, proper requisitioning will determine account coding. If requisitioning does not warrant the use of account codes 5708-5711, indirect costs will be appropriately assessed against the award.