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Direct Cost Exception Approval

Administrative and Clerical Salaries

Normally, cost accounting standards require that administrative or clerical salaries be treated as F&A* costs. At the time of award, if administrative or clerical salaries were included in the proposed budget, ORS* will ask that Direct Cost Exception Form I: Administrative and Clerical Salaries be completed.  If a PI* discovers a need for administrative assistance on a project after award acceptance is complete, he or she will be asked to submit a Request for Rebudgeting of Grant Funds form. A major project (such as a program project grant) is one example of a situation where it may be acceptable to charge administrative or clerical salaries to a federal grant.  There are other justifiable situations.  Refer to the GAPs to determine if your situation qualifies.

Non-labor expenses

Like administrative salaries, general office supplies, local telephone service, small computers, and related equipment are costs normally considered to be administrative and are normally covered in the F&A* costs of a grant.  If a PI* discovers during the project that general office supplies are needed, he or she may request an exception to this rule.  To do this, the PI* must explain - or justify - why the general office items they wish to purchase on the grant are necessary to accomplish the specific aims of the project.

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