All funded research grants, contracts and agreements are required to include indirect cost recovery. As of May 1, 2015 changes are being introduced that will impact the recovery rate and distribution of indirect costs at UBC.
Changes to the distribution of recovered indirect costs
These changes apply only to UBC’s share of indirect costs, and will be applied after indirect costs are shared with our health authority sites.
Indirect costs recovered through the Federal (Tri-Council) Indirect Costs Program (now re-named as the Research Support Fund), which form a core component of UBC’s budget, are distributed in a different manner, and are not affected by the following changes.
There are two changes to the distribution of recovered indirect costs for new projects, starting May 1, 2015:
- An increase in the share being returned to faculties from 50% to 75%.
- The ability for approved centres and institutes to receive a share of recovered indirect costs.
Where there is no involvement of an approved centre or institute, the new distribution will be:
- 75% to the relevant Faculty Dean
- 25% to Central Services (General Purpose Operating Fund)
Where the research is primarily located at an approved Centre or Institute:
- 50% to the eligible Centre or Institute
- 25% to the relevant Faculty Dean
- 25% to Central Services (General Purpose Operating Fund)
The list of approved centres and institutes is submitted on an annual basis by the Deans of the faculties.
Change to the recovery rate of indirect costs
Starting May 1, 2015, the required indirect cost recovery rate for all new industry-funded projects is increasing from 25% to 40% of direct costs. As a result, the indirect costs recovery rates will be:
- 25% of all direct costs for all non-industry funding (government and non-profits)
- 40% of all direct costs on all industry funding
All industry projects initiated prior to May 1, 2015 may continue to recover indirect costs at a rate of 25%.
The only exceptions to these rates will continue to be funds from any of the Tri-Council funding agencies and funds through grant applications that specify a verified, alternate rate.
After May 1, 2015, all discretionary powers for the recovery rate of indirect costs (for projects not covered by the standard or published verified rates) rests with the deans of the faculties and not with the Vice President Research Office.
All changes are applicable to funds for projects conducted at both University campuses (Vancouver and Okanagan), and the University’s Affiliated Teaching Hospitals.
The Research Project Information Form has been modified to reflect these changes.