University Of Arizona Indirect Cost Rate Agreement

Institutions and administrative costs ( R-D) – overhead, administrative allowances or occasional institutional allowances – are the costs associated with supporting sponsored programs, generally, but which cannot be identified with a single project. Including Requests for Facilities and Administrative Fees (AR) allow ASU to recover some of its actual costs. If the funds come from Confederation and go through non-profit or non-federal naders, the federal program rates prevail. Use the research and development rates approved in the DHHS-approved agreement, which is effective at the time of the review. Is it true that some universities spend up to 50 to 75 per cent of the funds they receive from the federal government to pay indirect costs? Another relatively common type of activity that falls under other sponsored activities is university support. This category includes the costs provided by UMaine`s educational, research and public program support services. How is accountability integrated into the research and development reimbursement system? Universities are aware of the need to use federal funds appropriately and to limit their costs while making the most of research projects. It is interesting to note that the total research and development costs for research conducted by universities are comparable on average, if not slightly less, than other researchers, such as federal laboratories and private contractors (RAND, 2000). In addition, since 1991, the Office of Management and Budget has had a ceiling of 26 per cent for the percentage of public funds that can be made available to universities to cover administrative costs (including the costs incurred by the university to comply with federally imposed rules). Any proposal containing less than the unseeded full research and development costs must be accompanied by a letter from the investigator/senior project manager, which corresponds to the corresponding authorization of the department/university. The letter should provide that, in order to conduct research on behalf of federal authorities, universities must bear a large number of costs that they would not otherwise have, both before and during the course of a specific research project. Facilities and administrative costs (R-D), often referred to as indirect costs, cover part of the university`s infrastructure and operating costs related to federally funded research.

These common costs include the maintenance of sophisticated high-tech laboratories for advanced research; Distribution companies such as light and heat; Telecommunications; Hazardous waste disposal and the infrastructure needed to comply with various federal, regional and local regulations. Whether it`s the cost of maintaining a lab, connecting to the high-speed internet or lighting labs, what a university pays for products covered by the costs of research and development D, usually covers a large number of projects, not just a federal research project and not just federal research. For example, a university may pay a quarterly fee of $5,000 for hazardous waste management. Since only a portion of this waste is a by-product of federal research, the government only pays the share of waste generated during the conduct of publicly funded research, according to strict rules and limits set by the Office of Management and Budget. It would be more expensive, longer and more inefficient to have two separate contracts for hazardous waste disposal, one for all federal research and the other for everything else. When a new faculty member transfers his scholarships to the University of Arizona from his former rDI institution, RDI accepts the previous institution`s lower research and development rate for the remainder of the scholarship period.