Arizona State University Indirect Cost Rate Agreement

i NSF is working to improve data on university R&D expenditure, which is currently based on a weak institutional self-information system. In some cases where institutions did not provide this information to the NSF for a variety of reasons, they indicated imprecisely in their data tables that the institution did not contribute to supporting the research. In addition, many other institutions do not sufficiently report on their contribution to research. A proposal to continue a project that has benefited from a reduction or waiver of R&A will require a new R&A cost reduction request for continuation, unless it is clear that Research, Discovery & Innovation has granted the initial R&A cost reduction for the duration of a project. It is the university of Arizona`s policy to request the reasonable state-brokered R&A rate for all sponsored activities, regardless of the source of funding, the federally negotiated R&A rate will be the basis for budgetary purposes for all sponsored activities. If a referral agency limits or prohibits the refund of M&A based on federal/state/local laws, administrative rules, or published referral guidelines, the following exceptions apply to Federal Flow Through or specified M&A rates. The type of activity is the basis of the R&A phrases applied to a project (Facilities & Administrative). The activity type is used by the Financial Services Office to determine the overhead and space obligations of sponsored research at the University of Arizona. Although a project may contain parts of several categories, only one overall objective of the project must be defined.

Is it true that some universities spend up to 50 to 75 per cent of the funds they receive from the Confederation on indirect costs? The percentage resulting from the calculation of R&A varies from university to university, as costs vary depending on factors such as geographical location, the condition of research facilities, and the extent of renovation and construction needed to house certain types of research. A university`s specific percentage is applied to all federal grants awarded for a period of three or four years. During this period, the government requires a rigorous review and review of a university`s R&A expenditures, to ensure that the school is using the funds correctly. The interest rate is reviewed at the end of this period and adjustments are made if necessary. M&A: 32%, unless a federal or regional regulation requires a lower rate of projects sponsored by Arizona public authorities, for which the Agency indicates that this is the maximum allowable rate2 In order to determine the amount of reimbursement of R&A costs, a university and the government regularly evaluate these common costs and determine the corresponding federal share. The total amount is ultimately calculated as a percentage of the amount allocated by the government for direct research costs (not as a percentage of total funds, which is a common error in judgment). For example, after reviewing all expected costs and research projects, both parties may find that an amount of 50% of direct research costs is appropriate for the government to contribute to R&A costs. In this case, if the government awards $300,000 to a university for the direct cost of a research grant, it also awards $150,000 for R&A costs, for a total of $450,000. (Note: in practice, the overall R&A reimbursement would probably be slightly lower, with some elements of direct costs excluded from the R&A calculation.) A reduced reimbursement of R&A fees is allowed if it is set (mandatory) by a federal/regional/local government, industry or national non-profit organization….