| Policy
The total cost of all externally funded projects consists
of expenses incurred for both direct and indirect (Facilities
and Administrative) activities. The constitution of the
State of Oklahoma in Article 10 Section 15 prohibits the
extension of state resources by loan or credit to any
individual, company, corporation, or association, municipality,
or political subdivision. Indirect costs represent real
costs that the University incurs for every program, regardless
of whether these costs are reimbursed by the sponsor or
not.
Federal regulations provide for recovery of these costs
and require that costs be treated consistently. It is
the policy of the Vice President for Research of the University
of Oklahoma-Norman Campus to recover the full cost reimbursement
of indirect costs at the federally-approved applicable
rate on all externally funded projects, including research,
public service, training and instruction grants and contracts.
Procedures
For projects funded directly by federal agencies or with
pass-through federal funds from federal agencies, the
applicable rate based upon the University’s federally
negotiated and approved indirect cost rate agreement in
effect at the time of proposal submission shall apply.
Exceptions are granted for Federal programs that impose
a reduced rate as statutorily required and specified and
published in the sponsored program announcement. The difference
in the University’s negotiated rate and rate assessed
will be tracked as a cost sharing commitment by the Office
of the Vice President for Research (OVPR).
For projects funded by not-for-profit organizations and
foundations, indirect costs will be recovered at the allowable
rate. The University will accept the sponsor’s published
policy regarding allowable indirect costs. The difference
in the applicable negotiated rate and rate allowed and
assessed will be tracked as a cost sharing commitment
by the Office of the Vice President for Research (OVPR).
For projects funded by state and local agencies with
federal pass-through federal funds, the applicable rate
based upon the University’s federally negotiated
indirect cost rate agreement in effect at the time of
proposal submission shall apply. For projects funded by
state agencies with funds that are state appropriated
or funded using federally appropriated dollars that are
budgeted as a part of the state agency budget, the off-campus
rate will apply. The State agency must provide written
certification to the Office of Research Services of any
statutorily required prohibitions on indirect costs recovery.
In the case of local agencies and municipalities funded
primarily through taxes paid by citizens of the state
of Oklahoma, the off-campus rate will apply. For these
on-campus projects funded by state and local agencies
for which the off-campus rate is applied, the difference
in the negotiated on-campus rate and applied off-campus
rate will be tracked as a cost sharing commitment by the
Office of the Vice President for Research (OVPR).
For projects funded by private industry, full recovery
at the applicable negotiated rate is required.
Exceptions to this policy are subject to approval by
the Vice President for Research and represent a cost sharing
commitment by the University. Requests for cost sharing
must be submitted to the Vice President for Research as
specified in the Cost Sharing Policy and using the electronic
form found at http://research.ou.edu/about/costshare.html
June 2005
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