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Policy Statement:
Indirect Costs
Indirect costs are a reimbursement to the University for the expenses
associated with research, training, and service conducted under
external
grants and contracts. These expenses include the cost of
administration,
depreciation and financing costs for buildings and equipment,
utilities,
and maintenance and repairs. The indirect cost rate charged by
the
University is negotiated with and approved by agents of the federal
government
periodically and represents the real cost of providing services under
grants
and contracts. The Associate Provost for Research and Director
of the Office of Research Administration is the only University
official authorized to
reduce this rate through University cost sharing. Each University
unit engaged in providing contractual services to businesses and
external
funding agencies will be expected to establish and maintain a printed
fee
structure that has been reviewed by ORA and certified as consistent
with
the basis for rates negotiated with the federal government to establish
the University's allowable costs.
Direct Costs
Although principal investigators may initiate requests for the sharing
of University resources for direct costs such as salaries, equipment,
and
supplies with the department chair and dean, the Associate Provost
for Research and Director of the Office of Research Administration is
the only
university official authorized to grant final approval for such cost
sharing.
The Associate Provost for Research and Director of the Office of
Research Administration
will consult with the principal investigator, the chair, and dean, if
necessary,
to establish the University's cost share. Principal investigators
may not make commitments of salary funding to potential grant employees
prior to official notification of the grant award. When a
proposal
is approved, any final negotiations of the grant or contractual
arrangements
are made by the Associate Vice President for Research and Director of
Research
Administration, in consultation with the principal investigator and, as
necessary, legal counsel.