Direct costs. Direct costs are costs that can be directly attributed to the work on the project. This includes labor (hourly rates and benefits), equipment, subcontractors, etc.

• Project Supplies and Services. We will allow line items for project-specific supplies and services, such as printing and copying costs for project drafts and reports, long-distance calls (but must provide documentation with the Request For Disbursement), publications, maps, travel, etc.
  
  
• Travel. Please note that travel reimbursements for Grantees and their consultants must adhere to the State rates and restrictions, including meal costs, mileage, and hotel rates. Your Project Manager can provide details.

Indirect Costs/Overhead. Indirect costs or overhead means the non-specific project costs of doing business (e.g., rent, computers, telephones, fax machines, internet access, copy machines, electricity, etc.). Grantees have two options for billing overhead costs:

• Option 1 - build the costs into the employees’ hourly rates. The Grantee’s organization should retain records showing how the overhead portion of the rate was calculated, in case of an audit.
  
  
OR


• Option 2 – Grantee may charge a fair share of indirect costs that can reasonably be ascribed to the services provided. Unless this amount is satisfactorily demonstrated to the Conservancy, overhead shall not exceed 15% of all combined labor costs (sum of Grantee labor costs and consultant labor costs). Overhead should not be figured on materials and other costs (e.g., printing, construction materials, etc.); it should only be figured on labor.