UNIVERSITY POLICY

SUBJECT: FINANCIAL AFFAIRS TITLE: INDIRECT COSTS: NON FEDERAL RESEARCH

CODING: 00-01-50-90:10 ADOPTED: 03/15/91 AMENDED: 03/15/91

I. PURPOSE

To ensure that the University is adequately reimbursed for the use of its facilities, utilities, personnel and for all other overhead costs associated with the conduct of sponsored research programs other than those supported by Federal funding.

II. ACCOUNTABILITY

Under the direction of the Senior Vice President for Academic Affairs and the Senior Vice President for Administration and Finance, the Deans and the Vice President for Financial Affairs and Treasurer shall ensure compliance with this policy. The Associate Deans for Research, faculty and staff members involved in the negotiation and/or conduct of sponsored research programs shall implement this policy.

III. POLICY

1.     This policy shall apply to all sponsored research programs other than those
        funded by the Federal government the indirect costs of which are fixed during
        negotiations with the University.
2.     It is the policy of the University to require full recovery of all direct and indirect
        costs incurred in the conduct of externally supported research programs. All
        potential sponsors of research programs must be informed of this policy before
        beginning negotiation of research project budgets.
3.     The UMDNJ Transmittal and Approval Form for Grants and Contracts (Exhibit
        I) must be completed for all research agreements and contracts before such
        agreements and contracts are executed. These may be executed by the
        President, one of the Senior Vice Presidents or their designees. In no instance
        may agreements or contracts with sponsors of research be executed by faculty
        members.
4.     The Vice President for Financial Affairs and Treasurer, in consultation with the
        Office of Academic Affairs and the Deans or their designees, shall determine
        each academic year in September the minimum indirect cost rate or rates for
        non-federally sponsored grants and contracts with the University. These rates
        will be made known to all faculty and staff involved in negotiation of research
        grants and contracts, and will determine the minimum rate of indirect costs
        required of a sponsor in the contract, effective December of each year.
5.     Exceptions to these published indirect cost rates will be permitted without an
        approved waiver only when the sponsor has an official and publicly advertised
        maximum indirect cost rate that is below that set by the University or an official
        policy that precludes the payment of indirect costs entirely. Examples of such
        sponsors may be voluntary health agencies, foundations and others. In this
        event, a copy of the sponsor's policy dealing with indirect costs must be
        attached to the Transmittal and Approval Form for Grants and Contracts.
6.     All other exceptions to the annually published UMDNJ indirect cost rates must
        be requested on the basis of the rare instances when it is in the best interests of
        the University to reduce or waive such costs. Requests for these exceptions
        must be submitted by the principal investigator in writing on a Request for
        Reduction or Waiver of Indirect Costs Associated with a Sponsored Research
        Program form (Exhibit II) to the Associate Dean for Research at that school.
        The Associate Dean for Research shall review these requests and, if he/she
        approves, route them to the Dean who has the final approval authority. Such
        requests for exception must explain why it is in the best interests of the
        University to subsidize the research project. A complete budget must be
        attached to this request.
7.     The number, incidence and reasons given for approved waivers shall be
        monitored in the office of the Vice President for Financial Affairs and Treasurer
        and a report issued every six months to the Senior Vice President for Academic
        Affairs, who will take appropriate action to assure compliance with the purpose
        of this policy and the spirit of the waiver process.
8.     Any special contract or agreement which is not addressed by the above
        policy should be referred to the appropriate Associate Dean for Research who
        will review the agreement in cooperation with the Vice President for Financial
        Affairs and Treasurer before referral to the appropriate Dean for approval.

IV. EXHIBITS

A.    Transmittal and Approval Form for Grants and Contract
        (can be obtained from the General Stores on any campus)
B.     Request for the Reduction or Waiver of Indirect Costs Associated with a
        Sponsored Research Program
       Download Exhibit B for Printing
          Word
          WordPerfect

By Direction of the President:

__________________________________________
Senior Vice President for Administration and Finance

Policy Manual Table of Contents

OPPM Home Page

UMDNJ Home Page