Hi Kris,
You just need to back out the indirects from the total cost. The IDC rate does not change.
$125,000 / 1.25 = $100,000 Direct x .25 = $25,000 Direct. So you set up $100,000 direct cost budget with a 25% IDC rate = $125,000.
Kathy
Kathleen M. Kreidler
Associate Vice President, Sponsored Projects Administration
Sponsored Projects Administration|
7000 Fannin | UCT 1003 | Houston, TX 77030
713 500 3968 office | 713 500 3999 main
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This came up a few times at a past institution.
There are sponsors who list the indirect costs as "xx% of the total costs" rather than as "xx% on the direct costs" and if your financial system can only list IDC as a percentage of
the direct costs, you have to figure out what that rate is when setting up the budget -- and it's always going to be higher. Example: say you ask for $125,000 total. You know the indirect cost according to the sponsor is 25% of $125,000 which is $31,250, leaving
$93,750 in direct costs. To figure out the indirect cost expressed as a percentage of the direct costs, you divide the indirect by the direct and come up with 33.3%, which on first glance seems higher than allowed.
Even though the
dollar figure was the same, my finance office was uncomfortable using an indirect cost rate that appeared to be higher than the sponsor's posted rate. Twice they made me go back to a sponsor to get written permission because there was nothing in their
T&Cs or FAQs I could point to as this being OK to do. The first time the sponsor said "of course, it's the same amount"; the second time, the sponsor wasn't sure either and had to go to their Board to get us permission! (The third time, we just included an
explanation in the financial report.)
It seemed like this was something neither the sponsors, nor the people who had set up our financial system originally, had considered might be an issue.
-------
Kris Wolff
MSL, MA, CRA
Grants Manager, Department of Neurology
Icahn School of Medicine at Mount Sinai
Annenberg 14-22, Box 1137
Ph: 212-241-0728
Notary Public, New York County
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Sent: Friday, April 19, 2024 9:13 AM
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Subject: [RESADM-L] Info for Presentation
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Good morning!
I was hoping to pick everyone's brain. I'm doing a presentation at NCURA in DC in August on navigating the gray area of sponsored projects administration. I have examples from my own experience, but was hoping to hear some unique situations you've
experienced or even things you tend to see repeatedly where you really have to dig to come up with the best solution..
Looking for examples of areas you may get questions about that have no real black and white definitive answer in UG, institutional policy, award doc or sponsor T&C's etc.
Appreciate your help!
J
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