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Grant Submission Process
Budget Preparation > Indirect Costs
Ohio University has a negotiated indirect cost rate agreement with the US Department of Health and Human Services. hhttp://www.ohio.edu/orsp/FA_FY2010_Distribution.html . Also referred to as Facilities and Administration Costs or Overhead, these costs, if allowed by the sponsor must be included in your proposal. The indirect costs recovered are used by the university for items such as pooled secretarial and technical support, utility and building fees, and general office supplies. Because the maintenance of buildings and administrative support are crucial for ongoing research, all proposals for external support of research and other sponsored programs must include the maximum recovery of indirect costs allowed by the sponsor.
Indirect costs are assessed as apercentage of all direct costs associated with the proposed project less equipment charges, scholarship, participant costs, subcontracts over $25,000 and patient care costs. Total project costs less any of the above costs is considered a Modified Total Direct Cost (MTDC) base. It is on this base that indirect costs should be assessed. In few instances, indirect costs can be taken on the above categories. Please contact your ORSP proposal preparation manager for more detail.
The example below illustrates how to assess indirect costs in a budget:
| Supplies |
$10,000 |
|
| Travel |
$5,000 |
|
| Printing |
$1,000 |
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| Equipment |
$15,000 |
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| Total Direct Costs |
$31,000 |
|
| MTDC |
$16,000 |
($31,000-$15,000 equipment) |
| Indirect Costs |
$7,520 |
($16,000 x 47%) |
| TOTAL PROJECT |
$38,520 |
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ORSP will accept a reduction or cost sharing of indirect costs on proposal if there is sufficient information in writing indicating that this is the standard practice from a sponsor. All reductions or cost sharing via waiver on a proposal to sponsors willing to accept full indirect costs require a written request to the Director of ORSP two weeks prior to the submission of the proposal. Failure to get endorsement on a proposal with reduced or waived indirect costs in a budget may result in the withdrawal of that proposal, or, if funded, a rebudget of direct funds to cover the shortage or a different research incentive (award management section) distribution formula. The Vice President for Research has established several pre-approved reductions of indirect cost rates. For more information see policy 19.053.
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DON'T FORGET: All reductions or cost sharing via waiver on a proposal to sponsors willing to accept full indirect costs require a written request to the Director of ORSP two weeks prior to the submission of the proposal. |
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