Budget Templates

All funded research grants, contracts and agreements are required to include indirect cost recovery.

The required indirect cost recovery for research projects is:

  • 25% on all non-industry funding (governemnt and non-profits)
  • 40% of all direct costs on industry funding (projects initiated before May 1, 2015 may continue to charge the previous rate of 25%)

The only exceptions to these rates are funds from any of the Tri-Council funding agencies (UBC recovers indirect costs for Tri-Council funds through the Federal Research Support Fund formerly the Indirect Costs Program), and funds through grant applications which specify an alternate rate. 

The Indirect Costs of Research Verified Rates Table lists many of the verified exceptions to the standard UBC rate of recovery.

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.

Below is a sample budget development process.

A researcher creates a proposal for a research project with a government or non-profit partner with the following direct costs:

Direct Costs  
Principal Investigator Honorarium $8,000
Graduate Students (MSc x 2) $38,400 
Research Associate (Project Mgr.) $40,000 
Technician  $14,400
Consumables  $38,800
Equipment  $12,000 
Travel and Subsistence   $4,800 
Non-University Consultant  $3,600 
Total Direct Costs  $160,000 

 

The following models below demonstrate how to present to the sponsor a budget for this project utilizing the 25% recovery rate for government and non-profit projects.

Unless the sponsor specifies in writing that they require the indirect costs of research to be presented as a separate line item, the indirect cost should be built into each budget line item, as is customary for budgets.

Preferred “Price” Model 

(25% Indirect Cost Built Into Pricing)   

Principal Investigator Honorarium $10,000
Graduate Students (MSc x 2) $48,400 
Research Associate (Project Mgr.) $50,000 
Technician  $18,000
Consumables  $48,500
Equipment  $15,000 
Travel and Subsistence   $6,000 
Non-University Consultant  $4,500 
Total $200,000 
Alternative “Cost” Model

(only if required by Sponsor) (25% Indirect Cost Separated)  

Principal Investigator Honorarium $8,000
Graduate Students (MSc x 2) $38,400 
Research Associate (Project Mgr.) $40,000 
Technician  $14,400
Consumables  $38,800
Equipment  $12,000 
Travel and Subsistence   $4,800 
Non-University Consultant  $3,600 
UBC Indirect Costs (25% of direct costs) $40,000
Total Direct Costs  $200,000 

 

Tri-Council Matching or Partnered Grants

For Tri-Council grants requiring funding from one or more funding partners, the Tri-Council agency matches only the direct costs of the partners. Examples of these programs include, NSERC Collaborative Research and Development Grants, NSERC Idea to Innovation Grants, SSHRC Partnership Grants, CIHR Industry Partnered Collaborative Research Program, CIHR Proof of Principle Grants. In these cases, the agency may require that direct and indirect costs be shown separately in the budget submitted to the Tri-council agency. In all cases, an indirect cost recovery rate of 25% (for projects initiated after May 1, 2015, this rate will be 40% for industry partners) must be applied to the matching funds provided by the partner. Indirect costs should not be applied to the funds requested from the Tri-council agency.

Departmental, Unit and Faculty-Specific Fees

Some departments or units require that an “administrative fee” be charged to each project. It’s expected that consistent recovery of indirect costs of research will alleviate the need for these additional fees. If these additional fees are required, however, indirect cost recovery must still be applied at the standard rate to all direct costs, including the administrative fee.

Sub Awards to UBC

In multi-site projects, it’s the responsibility of the main site to apply on behalf of each sub-site the appropriate indirect cost recovery for that institution. As a sub-awardee, UBC requires 25% indirect costs recovery to be included in funds from the main site. The only exceptions to this are sub-awards from other academic institutions who’ve received grant funding (e.g. from Tri-council agencies or NIH), in which UBC has approved the alternate rate. All industry projects must recover indirect costs at the standard rate of 40% (25% for projects initiated prior to May 1, 2015), irrespective of where the industry sponsor receives its funding.

Machine and Equipment Purchase Grants

Grants for which 100% of the funds are to be applied toward the purchase of equipment, and not directly connected with a specific research project, are exempt from indirect cost recovery.