Institutions and administrative costs (sometimes referred to as indirect or overhead) are costs that are not specifically identifiable (unsustainable) for a project or program, but are valid costs for conducting research, guidance and other activities sponsored by the UMB. These costs include service management, procurement, building maintenance, utilities and libraries. Research and development rates are applied to direct costs to cover an extendable portion of the research and development costs Indirect costs are not applied to equipment (as defined in the UofL collective agreement), capital expenditures, patient care costs, rental fees, study assignments, scholarships and scholarships, participant assistance fees and the portion of each sub-premium of more than $25,000. AD (also known as “overhead,” “indirect costs” or “IDC”) refers to two broad categories of expenditure: institutions and administration. The following are accepted as a comprehensive coverage of indirect costs for the types of sponsored projects applicable. The collective agreement and additional information on research and development rates are available at: ora.umd.edu/resources/fa The application process for waiving research and development D is described in the UMCES Directive as follows: F. Request for waiver for exceptional circumstances – If a faculty or staff member believes that there is an exceptional justification for ensuring that a rate of R and D charges is applied at that time, a waiver may be sought. Federally negotiated indirect cost rates are applied to modified direct costs (MTDCs). The total modified direct costs exclude equipment, capital expenditures, patient care and remittances, rental fees, scholarships and scholarships, and the share of each portion of more than $25,000.
At UofL, equipment is defined as physical personal property (including technical computer systems) with an acquisition cost of $5,000 or more and a lifespan of more than one year (for more details, see the UofL collective agreement). Please note that for project budgets that contain indirect rates other than our Federally negotiated rates, the rate is generally applied to the total direct cost (TDC).