Modified Total Direct Cost (MTDC)

The MTDC is the base upon which the Finance and Administrative (F&A) cost rate is calculated and applied. The MTDC represents total direct costs less certain modifiers. Modifiers are categories of direct costs, identified by object codes, which are excluded from the base and not subject to F&A costs. The list of modifiers include: GRA tuition, fees and health insurance, capital equipment (including fabricated equipment and lease/purchase agreements), lease and rental (real property), and subcontract expenditures in excess of $25,000.

Object Codes Excluded from MTDC:

Object Code	Description
405X	S&W, Sabbatic Leave
427X	S&W, GRA Tuition & Fees
477X	S&W, GRA Support
498X	S&W, GRA Tuition
501X-51XX	Capital Acquisitions
55XX	Capital Construction
632X	L&R, Real Property
697X	Subcontracts (use limited to the contract amount above $25,000)
732X	Transfer to Plant/Debt Service
742X	Transfer to Plant
776X	Debt Service, Leases
81XX-82XX	Fellowship/Scholarship
845X	Prizes
860X	Student Aid, Other
94XX	Cost of Sales
950X	Accessory Instruction
951X-952X	Institutional Allowance
956X	Institutional Allowance
957X	Cost of Sales
983X	Equipment Sales Recovery