(current as of 6/25/01)
Timeline for preparing proposals Important resources for the writing process Comprehensive guide for preparing submissions The following information will help in filling out many application forms for grants and contracts, and in preparing budgets. Please call our office at (714) 578-8483 if you need additional information.

Indirect Cost Rates
Fringe Benefits
North Orange County Community College District
Using Consultants
Indirect Cost Rates Federal Proposals
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54.6% of salaries and wages for on-campus projects.
24% of salaries and wages for off-campus projects.
The percentage does not apply to fringe benefits or to non-salary payments to consultants.
Non-Federal Proposals
25% of "modified total direct costs" for on-campus projects
10% of "modified total direct costs" for off-campus projects
"Modified total direct costs" refers to the total of all project costs except
stipends, equipment cost (items over $5,000), and the amount of each subcontract over $25,000
Note that these percentages apply to the direct costs (the amounts you actually spend), not to the total of direct costs and indirect costs.
Example:
Correct Overdone
Project Costs $60,000 25% of project costs $60,000
Indirect Costs $15,000 $20,000 25% of total costs
Total $75,000 $80,000
The distinction between on-campus and off-campus projects depends on the preponderance of the effort. If most of the labor occurs off-campus, then generally the project should be regarded as an off-campus project. The distinction should be made on an either-or basis; do not prorate or allocate percentages of the project.
Fringe Benefits
[Back to TOP]		 There are a few basic rates to use, depending primarily on whether the person is full-time or part-time.

For all employees there are certain legally mandatory employer taxes that must be paid -- specifically, FICA (Social Security), Workers Compensation Insurance, and state unemployment insurance. Full-time persons (half-time or greater) are eligible for other benefits as well -- retirement, health, life insurance, etc., and these require payment of a higher rate.

College employees (assigned to NOCCCD for the grant project) 
For faculty assigned time ("release time") 16.75%
For full-time staff, full-time researchers 16.75%

All employees of the NOCCCD may not be treated as consultants. The rates above will apply.
NOCCCD
[Back to TOP]		 For every grant and contract, the actual recipient organization will be the
NOCCCD. This point is sometimes forgotten when faculty or staff members negotiate contracts themselves. Please remind the sponsor.

The District's address is:

    1830 W. Romneya Drive
    Anaheim, CA 92801

The phone number is:

    (714) 808-4752

The District Manager for Instructional Resources is Raine Hambly.
Using Consultants
[Back to TOP]		 The difference between employees and consultants is important primarily for tax purposes.

For employees, the employer is required to withhold money for income tax and to pay certain employer taxes (e.g., unemployment insurance). Federal and state tax agencies are therefore rather concerned with whether a worker is an employee or a consultant. However, it may be difficult to distnguish between the two in practice. Tax agencies rely on the weight of the evidence on several different criteria -- such as where he works, how he is supervised, whose equipment and facilities he uses, who sets his work hours, and so forth. Therefore in some cases this office may be asking you questions about the circumstances.

As noted above, all faculty, staff and students of NOCCCD will be treated as employees, not consultants, in creating grant and contract budgets.

In setting the rate of compensation for a consultant, two questions are paramount:

1) Has this person earned this rate on the market before
    for similar work?

2) Is the rate reasonable (typical, conventional) for the work
    being done?

Sponsoring agencies may ask the District, and therefore we may ask you, to provide documentation on those matters.