What happens if a sponsorship agency refuses to pay indirect costs? Sponsors sometimes limit the reimbursement of indirect costs to a rate lower than the full rate. In certain circumstances, a derogation from the authorized indirect cost rates may be requested. The indirect cost rate of the sponsor must be a credit initiated by the promoter and not an ad hoc restriction based on discussions with the campus. This derogation from the Sponsorship Directive generally does not apply to for-profit organizations or foreign government organizations. When developing a proposal budget, you always assume that the full indirect costs will be applied. In the event that indirect costs can be reduced or eliminated on an exceptional basis, you can increase your planned budget by rescheduling indirect costs at direct costs. However, if you present a budget to a sponsor that does not contain indirect costs and indirect bookings are found to be applicable, you will likely need to reduce budgeted funds for program activities to cover indirect costs. If you think a distinction may be subject to a lower standard overhead, contact OCG. We will determine whether the university has an exception for a single sponsor program or whether an overhead application is successful in the specific case. These studies are most often conducted in conjunction with the U.S. Food and Drug Administration obtaining new drug or device approvals in Phase i, II, III or IV, although they can only be designed to collect and analyze data on authorized drugs or devices to contribute medical knowledge of the treatment of a disease or medical condition. In all cases, the study must include prospective subject registration and controlled examination of a drug, device or diagnosis as part of an approved protocol.

Retrospective revisions of diagrams, analysis of existing medical data and records, laboratory research, animal studies and federally funded projects are not classified as clinical studies for the application of the approved indirect cost rate for clinical trials. Administrative cost pools are “limited” to 26%, regardless of what these costs actually are. UC Davis` research and development collective agreement is negotiated every three to five years with the Department of Health and Human Services and is derived from a complex calculation that includes the use of space and the following sets of costs: Why would I want to include indirect costs in my proposal budget? The university, as a publicly funded institution, must operate, including sustained projects, on the basis of “no profit, no loss.”

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