Re: effective Overhead rate return Bill Covington 14 Nov 1994 09:35 EST

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>Date: Fri, 11 Nov 1994 13:29:05 LCL
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>From: Anita Quinn <xxxxxx@MTU.EDU>
>Subject: Re: effective Overhead rate return
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>Date: Fri, 11 Nov 1994 11:53:01
>From: aquinn (Anita Quinn)
>To: xxxxxx@albnydh2
>Subject: effective Overhead rate return
>
>I work at Michigan Technological University as the Director of Research
>Services and have been ask to put together some information with respect to
>overhead collected.. I have seen quite a discussion on the network in the
>past few months regarding indirect costs.  One figure I have not seen
>discussed is the "effective rate" of indirect costs collected.  In
>otherwords,  since some agencies won't pay full overhead, and since many of
>us work with MTDC overhead rates, the effective rate collected on total
>research expenditures is considerably lower than the actual overhead rate
>negotiated.
>
>    I have five questions, and if you have a minute to quote some rough
>figures I would appreciate it.....
>
>    1. What is your overhead rate?
>    2. What is your TOTAL research dollars expenditures?
>    3. What is your total overhead collected?
>    4. What is your "effective rate" collected?
>    5. and how much is returned to colleges and departments (one figure is
>       fine)
>
>    Also if anyone knows who was collecting some of this information in the
>past few months can you please pass back that persons e-mail address to me.
>
>Thanks much
>Anita Quinn   xxxxxx@mtu.edu

1. 48% of salaries and wages before fringe
2. A little over $2,000,000 for fy 94
3. About $242,000 collected
4. I have not calculated the effective rate, but agree with you that this
is an important number.
5. We are in the process of establishing a new policy for disbursement of
recovered IDC. Probably  25 to 30 % will be returned.

Bill Covington
Associate VP for Research and Sponsored Programs
Sam Houston State University
Huntsville, Texas