Policy: VIII.D.3x (inactive)
Issued: December 15, 1986
Owner: University Comptroller
Latest Revision: 12/06/04
APPLICATION OF INDIRECT COST RATES
The general policy of the State of Virginia and the University is to recover full indirect costs. This policy is consistently applied except, where there are limitations imposed by the sponsor, where a private foundation sponsor has no formal policy on the reimbursement of indirect costs, or where the uniqueness of the project warrants exceptional action. Provisions for the recovery of indirect costs are as follows:
2.0 Policy [Top]
2.1 Federal Sponsors
Federal sponsors support full indirect cost with minor exceptions. Where the Federal sponsor's formal indirect cost recovery limitation is less than the University's approved rate, the sponsor's limited rate shall be applied. Some examples of Federal limitations are training grants and research career development awards which limit indirect cost recoveries to 8% of total direct costs.
2.2 Nonfederal Sponsors
Nonfederal sponsors include Commonwealth of Virginia agencies, local governments, industry and foundations. Where these sponsors support full indirect cost recoveries, the University will apply its approved indirect cost rate. However, if a sponsor has a formal written policy to limit indirect cost recoveries, the University will apply the lesser of the sponsor's limited rate or the University's approved rate. Where foundations have no formal policy concerning indirect cost recoveries, the University will apply the appropriate rate.
Exceptions to the application of full indirect costs rates within the University policy are contingent on conditions established by the University and approved by the State Department of Accounts. The conditions for such exceptions are as follows:
- The academic merits of the program are exceptional,
- The program is part of an unusually important instructional or service role within the overall mission of the University of Virginia, and
- Available funding is very limited, or
- The application of the full rate would result in an inequitable recovery as in the case of a conference or institute involving a short period of time.
For any of the above exceptions to apply, a request for deviation from the standard rates must be forwarded in writing with the proposal through the respective department head and dean to the University Comptroller. A discussion with the Vice Provost for Research and Public Service, the dean and principal investigator will be held to resolve the exception request.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]