Administrative Memo ORA-96-06
|Subject:||Indirect on Cost-Sharing|
|From:||Sue Weir, Research Administrator|
Proposals prepared by the Office of Research Administration which have cost sharing provisions will show corresponding Indirect Cost Recovery at the applicable rate negotiated with DHHS. This indirect will be "soft money" that is not transferred in to a cost sharing account. No "hard" dollars will be required.
The rationale is as follows: Indirect (overhead) cost recovery on State funds ("2" account funds) is taken at the beginning of the budget cycle. Therefore, transferring cost shared indirect would act as a double overhead on these funds. Although the percentage taken is 25%, showing the negotiated indirect rate on the proposal is consistent with standard pricing and enhances the University's competitive position. The negotiated rate is the rate that the agency would be charged if it funded the entire project.
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