UVM’s Cost policy has determined what is considered a typical direct cost and what is typical indirect costs.

Principal Investigators who believe circumstances of their federally funded project warrant an exemption that would allow direct charging a normally indirect cost item as direct must do the following:

Make the request using UVMClick - Request Award Modification activity.

  1. Login to UVMClick
  2. Click the Grants Tab, click Awards, Search for the applicable award (By PI Name is probably easiest).
  3. Click on the "Name" (title) to open the record.
  4. Click the left side menu item "Request Award Modification".
  5. Complete the SmartForm, and click Finish.

The request is sent to the assigned SPA Specialist who will complete the action.

For a more details refer to:


If approved, SPA will open the spending account code that is then used for posting the charge to the sponsored project in the accounting system (PeopleSoft).

Cost that Require the Direct Cost Justification Form

Below is a comprehensive list of accounts and their descriptions that currently would need a Direct Cost Justification Form be completed, delivered to SPA and approved in order to charge such cost directly to a federally funded project.

Direct Cost Justification
Require Direct Cost Justification Form
IC = Internal Charge
Costs  that Do NOT Require Direct Cost Justification Form
IC = Internal Charge
F6020 - Computer Supplies & Services F5000 - Administrative & Clerical Salaries
60005 - Computing Supplies 1. Administrative or clerical services are integral or necessary to accomplish the scope of work being funded to the project or activity;
60201 - Computer Services External 2. Individuals involved can be specifically identified with the project or activity;
60221 - Data Storage Services External 3. Such costs are explicitly included in the budget proposed to the federal sponsor or have the prior written approval of the Federal awarding agency;
65042 - Non-Cap Software <$5000 4. Otherwise, federal grant's officer written approval is required.
65103 - Software Maintenance & License F6021 - Computer Devices
65104 - Software Services Contract 65022 - Non-Cap Computer Hardware <$5000
80015 - IC Software 80014 - IC Computer Hardware <$5000
80016 - IC Micro Comp Srvcs/Accsr 80047 - IC Computing Services (Vermont Advance Computer Core - VACC)
80252 - IC Software Installation  
80253 - IC Software Svcs/Repair

F6510 – Equipment Maintenance

80255 - IC Hardware Installation Maintenance agreements  or service contracts on scientific/technical equipment which are used to specifically to advance the purpose of a sponsored agreement may be direct charged if either one of the two following allocation approaches are used:
• Actual usage of the related equipment is tracked e.g. a log and the usage information is the basis for allocation
• The PI can apply the proportional benefit rule without undue effort or cost to the applicable sponsored agreements
80256 - IC Hardware Maint & Repair  
F6002 - General Supplies & Services
60001 - Office Supplies  
60002 - Paper Supplies  
60009 - Other Supplies  
60041 - Art Supplies  
600814 - Clinical Supplies  
60091 - Instructional Supplies  
60092 - Instructional Services  
60103 - Copier Supplies  
60121 - Postage  
60161 - Books  
61201 - Accounting/Audit Services  
61235 - Patent & Copyright Fees  
63123 - Cust Spec Supplies  
63125 - Cleaning Supplies  
63127 - Vehicle Maint Supplies  
63128 - Equipment Maint Supplies  
65002 - Other Equip <$5000  
65051 - Furniture <$5000  
80019 - IC Microfilming Services  
80025 - IC Mail Processing  
80026 - IC Audio/Visual Services  
80033 - IC University Postage  
80215 - IC Office Supplies  
80217 - IC Instruction Supplies  
80218 - IC Books  
80236 - IC Consulting Svcs  
80237 - IC Instruction Svcs  
80240 - IC Parking Svcs  
80248 - IC Davis Ctr Svcs  
F6006 - Memberships & Subscriptions  
60163 - Periodicals/Subscriptions  
60165 - Electronic Reference Sources  
60169 - Other Information Resources  
60561 - Membership Fees and Dues  
60563 - Internet Membership & Dues  
F6007 - Work Order Services  
80101 - IC WO-Wages  
80102 - IC WO-Benefits  
80103 - IC WO-Materials  
80104 - IC WO-Ext Repair & Maint  
80105 - IC WO-Equipment Rental  
80106 - IC WO-Ext Consulting  
80107 - IC WO-Equipment $5000  
80108 - IC WO-HZMAT Disposal  
80120 - IC PPD WO-Wages  
80121 - IC PPD WO-Benefits  
80125 - IC PPD WO-Materials  
80130 - IC CUST WO-Wages  
80131 - IC CUST WO-Benefits  
80135 - IC CUST WO-Materials  
F6301 - Utilities  
61001 - Insurance  
61002 - General Liability Insurance  
61006 - Vehicle Insurance  
63001 - Electricity  
63003 - Water & Sewage  
63021 - No. 2 Fuel  
63022 - No. 6 Fuel  
63023 - Natural Gas  
63024 - Propane  
63025 - BioDeisel Fuel  
63029 - Heat-External  
63130 - Gasoline/Oil  
80027 - IC - Heat Plant  
F6320 - Telephone & Telecom Services  
57895 - Cell Phone Stipend  
60205 - Network Consulting  
60209 - Non-UVM Internet Srvc  
63201 - Non-UVM Phone Service  
63205 - Telephone Tolls  
80002 - IC Phone Lines/Equip  
80003 - IC Long Distance  
80013 - IC Phone Work Order  


Costing Policy Website and Unlike Circumstances Guiding Principles

Please visit Cost Accountings website for more details about UVM’s Cost Policy and Unlike Circumstances.

Allocating Costs to Projects

When allocating charges to a sponsored project, a well defined and consistently applied cost allocation methodology is necessary. The cost allocation method used must document the equitable distribution of charges to a project in proportion to the benefit received. There is no single best cost allocation method for documenting the distribution of charges. The allocation method used is administered and maintained at the PI, Department and Unit levels.


The Principal Investigator and Department administration who are responsibility to ensure that all costs are necessary reasonable, and allocable for the performance of the project or activity being supported by the federal award, subject to any special terms and conditions.

Administrative and Clerical Salaries

Administrative and Clerical Salary positions may be charged directly to a project funded with federal dollars, without completing the Direct Cost Justification Form, as long as the Admin/Clerical position meets UVM’s Cost Policy.

Charging Computers Directly

Direct charging of computing devices, costing less than $5,000 is allowable, without the need for a Direct Cost Justification Form, provided the computer or computer device is essential and primarily used to support the performance of the project.

Non-Federal Sponsored Agreements

Exemptions apply to federally funded awards. For non-Federal awards all costs that are reasonable, allocable and necessary for the performance of the project or activity being supported by the non-federal award may be direct charged, subject to any special terms and conditions.


Updated 4/1/20