Actual vs. Theoretical Indirect Cost Recovery Phil Spina, RSP, Wright State University 31 Jan 1994 14:34 EST
In our Financial Services area, some bean counter has determined that
we are recovering only 69% of what the university should recover. They
determine this by calculating our actual MTDC base and multiplying the
base times the rate. Then they divide the actual indirect cost recovered for
a given fiscal year by what we were "supposed to be paid". The implication
being that our office isn't getting ALL the indirects we should. They
choose to ignore the fact that many sponsors (state agencies, foundations,
non-profits and even some federal programs refuse to pay part or all of
the indirect costs.
My question: Does anybody have any data on what an average percentage
rate of indirect cost recovery is?
I suspect that the bean counters won't be happy until the rate is 101% but
any information or possible strategies would help.
Wright State University