| INDIRECT COST RATES |
| Most
grant proposal will include indirect cost rates or administrative overhead rates. Some
grant guidelines will not allow overhead to be charged as a direct cost of the grant.
Depending on the terms of the grant guidelines, differing rates of overhead or indirect
costs may be used. These are general rules to follow: |
|
| Federal Research Rate: The University established rate is 43.0% of
Salary & Benefits through 06/30/04. This rate will be used for federal research grants or other federal
grants that allow the use of the indirect cost rate. Once a research grant is accepted,
the University must submit financial information to renegotiate the research rate. This
process must be done through the Grant Accounting Office, Administration & Finance
Division, Prakken 255B, phone x2157 or x3905. |
|
| State Overhead Rate: The overhead rate for State funded grants is
8% of total grant expenditures (grant budget). |
|
| Other
Administrative or Overhead Rates: Grant proposal guidelines may allow an
institution the flexibility to establish its own administrative overhead rate. The grant
proposal author may question the granting agency concerning ranges of overhead rates that
have been used in the past, and the cost basis on which these overhead rates are
calculated. |
|
| In
general, if the grant guidlines allow an institution to claim overhead costs, the
grant authors should take advantage of this, using the rates and schedules given above. |
|
INDIRECT/OVERHEAD
RATE ALLOCATION |
|
| A grant quality
improvement committee is reviewing the allocation of indirect and overhead rates on grants
as of fall semester 1999. Current levels of participation in the revenue generated by
overhead/indirect rates are as follows: |
|
| Principal
Investigator's Department Overhead Account |
30% |
| Department |
15% |
| College |
10% |
| Academic
Affairs (Grant Support) |
30% |
| Grants Accounting-A&F (Post Award) |
15% |
|
| Total |
100% |
| A portion
of the indirect costs recovered from every eligible grant will be allocated to the
principal investigator, his/her respective department, and the departmental dean's office.
A separate account will be established for these indirect costs, and a written plan for
the use of these funds will be submitted along with the request for this new account. The
use of indirect costs must comply with certain Federal and State regulations. It should be
noted that the percentage paid to the principal investigator is not a bonus or additional
compensation. It is intended to be used to provide income for program development,
educational opportunities for professional development, departmental equipment, or in the
performance of grant-funded activities. |
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