UFP: expects portion of its direct costs to be reimbursed

UFP: expects portion of its direct costs to be reimbursed

University of Florida Projects: Direct Costs and Reimbursement Framework
As of February 24, 2026, the University of Florida (UF) continues to adhere to established financial guidelines for sponsored projects, clarifying how direct costs are allocated and reimbursed. According to UF's financial directives, costs incurred for sponsored projects are categorized as either direct or indirect, depending on their traceability to specific activities. Direct costs, such as personnel salaries, materials, and equipment, are chargeable directly to a project when they can be easily identified with a particular sponsored activity.

UF's Research Division has emphasized that a portion of direct costs associated with its projects is expected to be reimbursed by sponsors, aligning with federal and institutional cost principles. This framework ensures transparency in budgeting, requiring detailed justification for expenses charged to sponsored programs. For instance, "other direct costs" may include items like travel, subcontractor fees, or specialized services, which must be pre-approved and documented to qualify for reimbursement.

Indirect costs, meanwhile, are recovered through separate mechanisms, such as facilities and administrative (F&A) rate agreements, and are not the focus of this reimbursement expectation. By distinguishing between direct and indirect expenses, UF aims to maintain compliance with sponsor requirements while optimizing resource allocation.

Financial stakeholders should note that UF's approach reflects standard practices in research administration, prioritizing accountability and adherence to contractual terms. As the university manages its sponsored projects, the expectation of partial reimbursement for direct costs underscores the importance of rigorous budget planning and audit readiness.

Charging Costs Directly or Indirectly to Sponsored Projects, UF Financial Affairs.
Other Direct Costs, UF Research Budgeting Guidelines.