38 CFR § 17.261 - Indirect costs.

---
identifier: "/us/cfr/t38/s17.261"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "38 CFR § 17.261 - Indirect costs."
title_number: 38
title_name: "Pensions, Bonuses, and Veterans' Relief"
section_number: "17.261"
section_name: "Indirect costs."
chapter_name: "DEPARTMENT OF VETERANS AFFAIRS"
part_number: "17"
part_name: "MEDICAL"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "38 U.S.C. 501, and as noted in specific sections."
cfr_part: "17"
---


# 17.261 Indirect costs.

The grantee shall allocate expenditures as between direct and indirect costs according to generally accepted accounting procedures. The amount allocated for indirect costs may be computed on a percentage basis or on the basis of a negotiated lump-sum allowance. In the method of computation used, only indirect costs shall be included which bear a reasonable relationship to the planning or program funded by the grant and shall not exceed a percentage greater than the percentage the total institutional indirect cost is of the total direct salaries and wages paid by the institution.

[33 FR 6012, Apr. 19, 1968. Redesignated at 61 FR 21966, May 13, 1996]