Allocation Costs

MIT is unique in its concept of “allocation accounts.” The determination and use of allocation accounts has been approved by our cognizant federal agency, the Of­fice of Naval Research (ONR) and is restricted to certain circumstances in certain laboratories. The basic principle is that the expenses of an approved allocation unit's central admin­istrative group are distributed to all accounts administered within the laboratory using rates pre-approved by MIT's cognizant agency and federal auditors (ONR-DCAA).

The expenses that may be charged through the allocation process include (1) the salaries and wages (exclusive of employee benefits and vacation accrual) of the employees adminis­tering the laboratory (such as administrative, fiscal, and facilities officers); and (2) the materials and services necessary to support the central administration of the laboratory.

There are three types of rates to allocate:

  1. Salaries and wages
  2. Materials and services.
  3. Utilities at Haystack Observatory only

Travel (except within the Administrative group), equip­ment, meetings and lunches, and any unallowable costs may not be charged to the allocation account.

A complete list of departments, laboratories and centers approved for al­location accounts and their respective allocation rates may be found in the Rates section of this website.