How & When to Include Indirect Costs

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class="menu__link" data-drupal-link-system-path="node/1877">Toronto Research Data Centre</a> </span> </li> <li class="menu__item menu__item-title--scinet" id="menu-name--main__scinet_partnershipsscinet"> <span class="menu__link--wrapper"> <a href="/partnerships/scinet" class="menu__link" data-drupal-link-system-path="node/836">SciNet</a> </span> </li> <li class="menu__item menu__item-title--institutional-core-facilities" id="menu-name--main__institutional-core-facilities_training-resources-facilitiesinstitutional-core-facilities"> <span class="menu__link--wrapper"> <a href="/training-resources-facilities/institutional-core-facilities" class="menu__link" data-drupal-link-system-path="node/1919">Institutional Core Facilities</a> </span> </li></ul> </li> <li class="menu__item is-parent menu__item--expanded menu__item-title--ethics-in-human-research" id="menu-name--main__ethics-in-human-research_group"> <span class="menu__link--wrapper is-parent__wrapper"> <a href="#group" class="menu__link">Ethics in Human Research</a> </span> <ul class="menu is-child even menu-level-2"> <li class="menu__item menu__item-title--overview" id="menu-name--main__overview_ethics-human-researchethics-human-research"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/ethics-human-research" class="menu__link" data-drupal-link-system-path="node/849">Overview</a> </span> </li> <li class="menu__item menu__item-title--when-do-i-need-a-human-ethics-protocol" id="menu-name--main__when-do-i-need-a-human-ethics-protocol_ethics-human-researchwhen-do-i-need-human-ethics-protocol"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/when-do-i-need-human-ethics-protocol" class="menu__link" data-drupal-link-system-path="node/850">When Do I Need a Human Ethics Protocol?</a> </span> </li> <li class="menu__item menu__item-title--submit-a-human-ethics-protocol" id="menu-name--main__submit-a-human-ethics-protocol_ethics-human-researchsubmit-human-ethics-protocol"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/submit-human-ethics-protocol" class="menu__link" data-drupal-link-system-path="node/851">Submit a Human Ethics Protocol</a> </span> </li> <li class="menu__item menu__item-title--protocol-submission-deadlines--who-to-submit-to-human-research" id="menu-name--main__protocol-submission-deadlines-who-to-submit-to-human-research_ethics-human-researchprotocol-submission-deadlines-who-submit-human-research"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/protocol-submission-deadlines-who-submit-human-research" class="menu__link" data-drupal-link-system-path="node/852">Protocol Submission Deadlines & Who to Submit to (Human Research)</a> </span> </li> <li class="menu__item menu__item-title--research-ethics-boards" id="menu-name--main__research-ethics-boards_ethics-human-researchresearch-ethics-boards"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/research-ethics-boards" class="menu__link" data-drupal-link-system-path="node/884">Research Ethics Boards</a> </span> </li> <li class="menu__item menu__item-title--how-to-amend-a-protocol" id="menu-name--main__how-to-amend-a-protocol_ethics-human-researchhow-amend-protocol"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/how-amend-protocol" class="menu__link" data-drupal-link-system-path="node/853">How to Amend a Protocol</a> </span> </li> <li class="menu__item menu__item-title--when-and-how-to-submit-renewals-protocol-completions-adverse-events-and-protocol-deviation-reports" id="menu-name--main__when-and-how-to-submit-renewals-protocol-completions-adverse-events-and-protocol-deviation-reports_ethics-human-researchwhen-how-submit-renewals-protocol-completions-adverse-events-protocol"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/when-how-submit-renewals-protocol-completions-adverse-events-protocol" class="menu__link" data-drupal-link-system-path="node/1743">When and How to Submit Renewals, Protocol Completions, Adverse Events and Protocol Deviation Reports</a> </span> </li> <li class="menu__item menu__item-title--post-approval-review-par-program---human-ethics" id="menu-name--main__post-approval-review-par-program-human-ethics_ethics-human-researchpost-approval-review-par-program-human-ethics"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/post-approval-review-par-program-human-ethics" class="menu__link" data-drupal-link-system-path="node/854">Post-Approval Review (PAR) Program - Human Ethics</a> </span> </li> <li class="menu__item menu__item-title--regulations--policies-for-research-involving-human-participants" id="menu-name--main__regulations-policies-for-research-involving-human-participants_ethics-human-researchregulations-policies-research-involving-human-participants"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/regulations-policies-research-involving-human-participants" class="menu__link" data-drupal-link-system-path="node/855">Regulations & Policies for Research Involving Human Participants</a> </span> </li> <li class="menu__item menu__item-title--schedule-an-ethics-consultation" id="menu-name--main__schedule-an-ethics-consultation_ethics-human-researchschedule-ethics-consultation"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/schedule-ethics-consultation" class="menu__link" data-drupal-link-system-path="node/856">Schedule an Ethics Consultation</a> </span> </li> <li class="menu__item menu__item-title--determine-if-a-protocol-qualifies-for-delegated-review" id="menu-name--main__determine-if-a-protocol-qualifies-for-delegated-review_ethics-human-researchdetermine-if-protocol-qualifies-delegated-review"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/determine-if-protocol-qualifies-delegated-review" class="menu__link" data-drupal-link-system-path="node/857">Determine If a Protocol Qualifies for Delegated Review</a> </span> </li> <li class="menu__item menu__item-title--international-legal--ethical-requirements" id="menu-name--main__international-legal-ethical-requirements_ethics-human-researchinternational-legal-ethical-requirements"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/international-legal-ethical-requirements" class="menu__link" data-drupal-link-system-path="node/858">International Legal & Ethical Requirements</a> </span> </li> <li class="menu__item menu__item-title--ethics-review-of-course-based-research" id="menu-name--main__ethics-review-of-course-based-research_ethics-human-researchethics-review-course-based-research"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/ethics-review-course-based-research" class="menu__link" data-drupal-link-system-path="node/859">Ethics Review of Course-based Research</a> </span> </li> <li class="menu__item menu__item-title--human-ethics-principles--guidelines" id="menu-name--main__human-ethics-principles-guidelines_ethics-human-researchhuman-ethics-principles-guidelines"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/human-ethics-principles-guidelines" class="menu__link" data-drupal-link-system-path="node/860">Human Ethics Principles & Guidelines</a> </span> </li> <li class="menu__item menu__item-title--activities-exempt-from-human-ethics-review" id="menu-name--main__activities-exempt-from-human-ethics-review_ethics-human-researchactivities-exempt-human-ethics-review"> <span class="menu__link--wrapper"> <a href="/ethics-human-research/activities-exempt-human-ethics-review" class="menu__link" data-drupal-link-system-path="node/861">Activities Exempt from Human Ethics Review</a> </span> </li></ul> </li> <li class="menu__item is-parent menu__item--expanded menu__item-title--ethics-in-animal-research--teaching" id="menu-name--main__ethics-in-animal-research-teaching_group"> <span class="menu__link--wrapper is-parent__wrapper"> <a href="#group" class="menu__link">Ethics in Animal Research & Teaching</a> </span> <ul class="menu is-child even menu-level-2"> <li class="menu__item menu__item-title--overview" id="menu-name--main__overview_ethics-animal-research-teachingethics-animal-research-teaching"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/ethics-animal-research-teaching" class="menu__link" data-drupal-link-system-path="node/863">Overview</a> </span> </li> <li class="menu__item menu__item-title--when-do-i-need-an-animal-use-protocol" id="menu-name--main__when-do-i-need-an-animal-use-protocol_ethics-animal-research-teachingwhen-do-i-need-animal-use-protocol"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/when-do-i-need-animal-use-protocol" class="menu__link" data-drupal-link-system-path="node/864">When Do I Need an Animal Use Protocol?</a> </span> </li> <li class="menu__item menu__item-title--protocol-review-process---animal-ethics" id="menu-name--main__protocol-review-process-animal-ethics_ethics-animal-research-teachingprotocol-review-process-animal-ethics"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/protocol-review-process-animal-ethics" class="menu__link" data-drupal-link-system-path="node/865">Protocol Review Process - Animal Ethics</a> </span> </li> <li class="menu__item menu__item-title--protocol-submission-deadlines--who-to-submit-to-animal-research--teaching" id="menu-name--main__protocol-submission-deadlines-who-to-submit-to-animal-research-teaching_ethics-animal-research-teachingprotocol-submission-deadlines-who-submit-animal-research-teaching"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/protocol-submission-deadlines-who-submit-animal-research-teaching" class="menu__link" data-drupal-link-system-path="node/866">Protocol Submission Deadlines & Who to Submit to (Animal Research & Teaching)</a> </span> </li> <li class="menu__item menu__item-title--submit-an-animal-use-protocol" id="menu-name--main__submit-an-animal-use-protocol_ethics-animal-research-teachingsubmit-animal-use-protocol"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/submit-animal-use-protocol" class="menu__link" data-drupal-link-system-path="node/867">Submit an Animal Use Protocol</a> </span> </li> <li class="menu__item menu__item-title--pedagogical-merit-review-for-animals-in-teaching" id="menu-name--main__pedagogical-merit-review-for-animals-in-teaching_ethics-animal-research-teachingpedagogical-merit-review-animals-teaching"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/pedagogical-merit-review-animals-teaching" class="menu__link" data-drupal-link-system-path="node/868">Pedagogical Merit Review for Animals in Teaching</a> </span> </li> <li class="menu__item menu__item-title--field-work-requirements" id="menu-name--main__field-work-requirements_ethics-animal-research-teachingfield-work-requirements"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/field-work-requirements" class="menu__link" data-drupal-link-system-path="node/869">Field Work Requirements</a> </span> </li> <li class="menu__item menu__item-title--peer-review-for-scientific-merit" id="menu-name--main__peer-review-for-scientific-merit_ethics-animal-research-teachingpeer-review-scientific-merit"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/peer-review-scientific-merit" class="menu__link" data-drupal-link-system-path="node/870">Peer Review for Scientific Merit</a> </span> </li> <li class="menu__item menu__item-title--standard-operating-procedures-sops--guidelines---animal-ethics" id="menu-name--main__standard-operating-procedures-sops-guidelines-animal-ethics_ethics-animal-research-teachingstandard-operating-procedures-sops-guidelines-animal-ethics"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/standard-operating-procedures-sops-guidelines-animal-ethics" class="menu__link" data-drupal-link-system-path="node/871">Standard Operating Procedures (SOPs) & Guidelines - Animal Ethics</a> </span> </li> <li class="menu__item menu__item-title--controlled-drug-exemptions--biosafety-permits" id="menu-name--main__controlled-drug-exemptions-biosafety-permits_ethics-animal-research-teachingcontrolled-drug-exemptions-biosafety-permits"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/controlled-drug-exemptions-biosafety-permits" class="menu__link" data-drupal-link-system-path="node/872">Controlled Drug Exemptions & Biosafety Permits</a> </span> </li> <li class="menu__item menu__item-title--mandatory-animal-user-training" id="menu-name--main__mandatory-animal-user-training_ethics-animal-research-teachingmandatory-animal-user-training"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/mandatory-animal-user-training" class="menu__link" data-drupal-link-system-path="node/873">Mandatory Animal User Training </a> </span> </li> <li class="menu__item menu__item-title--post-approval-review-par-program---animal-ethics" id="menu-name--main__post-approval-review-par-program-animal-ethics_ethics-animal-research-teachingpost-approval-review-par-program-animal-ethics"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/post-approval-review-par-program-animal-ethics" class="menu__link" data-drupal-link-system-path="node/874">Post-Approval Review (PAR) Program - Animal Ethics</a> </span> </li> <li class="menu__item menu__item-title--general-information-about-animals-in-research--teaching" id="menu-name--main__general-information-about-animals-in-research-teaching_ethics-animal-research-teachinggeneral-information-about-animals-research-teaching"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/general-information-about-animals-research-teaching" class="menu__link" data-drupal-link-system-path="node/875">General Information About Animals in Research & Teaching</a> </span> </li> <li class="menu__item menu__item-title--animal-care-committees" id="menu-name--main__animal-care-committees_ethics-animal-research-teachinganimal-care-committees"> <span class="menu__link--wrapper"> <a href="/ethics-animal-research-teaching/animal-care-committees" class="menu__link" data-drupal-link-system-path="node/883">Animal Care Committees</a> </span> </li></ul> </li> <li class="menu__item is-parent menu__item--expanded menu__item-title--research-integrity" id="menu-name--main__research-integrity_group"> <span class="menu__link--wrapper is-parent__wrapper"> <a href="#group" class="menu__link">Research Integrity</a> </span> <ul class="menu is-child even menu-level-2"> <li class="menu__item menu__item-title--overview" id="menu-name--main__overview_research-integrityresearch-integrity"> <span class="menu__link--wrapper"> <a href="/research-integrity/research-integrity" class="menu__link" data-drupal-link-system-path="node/766">Overview</a> </span> </li> <li class="menu__item menu__item-title--statement-on-research-integrity" id="menu-name--main__statement-on-research-integrity_research-integritystatement-research-integrity"> <span class="menu__link--wrapper"> <a href="/research-integrity/statement-research-integrity" class="menu__link" data-drupal-link-system-path="node/1736">Statement on Research Integrity</a> </span> </li> <li class="menu__item menu__item-title--submit-a-research-integrity-complaint" id="menu-name--main__submit-a-research-integrity-complaint_research-integritysubmit-research-integrity-complaint"> <span class="menu__link--wrapper"> <a href="/research-integrity/submit-research-integrity-complaint" class="menu__link" data-drupal-link-system-path="node/767">Submit a Research Integrity Complaint</a> </span> </li> <li class="menu__item menu__item-title--summary-of-research-misconduct-complaints-addressed-by-u-of-t" id="menu-name--main__summary-of-research-misconduct-complaints-addressed-by-u-of-t_research-integritysummary-research-misconduct-complaints-addressed-u-t"> <span class="menu__link--wrapper"> <a href="/research-integrity/summary-research-misconduct-complaints-addressed-u-t" class="menu__link" data-drupal-link-system-path="node/768">Summary of Research Misconduct Complaints Addressed by U of T</a> </span> </li></ul> </li> <li class="menu__item is-parent menu__item--expanded menu__item-title--honours--awards" id="menu-name--main__honours-awards_group"> <span class="menu__link--wrapper is-parent__wrapper"> <a href="#group" class="menu__link">Honours & Awards</a> </span> <ul class="menu is-child even menu-level-2"> <li class="menu__item menu__item-title--overview" id="menu-name--main__overview_honours-awardshonours-awards"> <span class="menu__link--wrapper"> <a href="/honours-awards/honours-awards" class="menu__link" data-drupal-link-system-path="node/755">Overview</a> </span> </li> <li class="menu__item menu__item-title--presidents-impact-award--academy" id="menu-name--main__presidents-impact-award-academy_honours-awardspresidents-impact-award-academy"> <span class="menu__link--wrapper"> <a href="/honours-awards/presidents-impact-award-academy" class="menu__link" data-drupal-link-system-path="node/756">President's Impact Award & Academy</a> </span> </li> <li class="menu__item menu__item-title--honours--awards-opportunities" id="menu-name--main__honours-awards-opportunities_honours-awardshonours-awards-opportunities"> <span class="menu__link--wrapper"> <a href="/honours-awards/honours-awards-opportunities" class="menu__link" data-drupal-link-system-path="node/757">Honours & Awards Opportunities</a> </span> </li> <li class="menu__item menu__item-title--divisional-honours--awards-coordinators" 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layout__region--content"> <div class="block-region-content"><div data-id="pagetitle-share-block" class="l-bl block block-config-provider--pagetitle-share-block block-plugin-id--pagetitle-share-block"> <div class="block__inner"> <div class="block__content"> <div class="pagetitle-share-block-wrp"> <h1 class="pg-title">How & When to Include Indirect Costs</h1> <div class="share-tools-wrp"> <span>Share:</span> <a class="email-link" href="#mailto" title="Email Link"></a> <a class="copy-link" href="#copy" onclick="return false;" title="Copy Link"> <span class="tooltip">Copied!</span> </a> </div> </div> </div></div> </div> <div data-id="quicklinks-block" class="l-bl block block-config-provider--quicklinks-block block-plugin-id--quicklinks-block"> <div class="block__inner"> <div class="block__content"> <div class="quick-links-wrp"> <div> <span>On this page:</span> </div> <ul class="quick-links">  </ul> </div></div></div> </div> <div data-id="entity-fieldnodefield-page-section-1" class="l-bl block block-config-provider--ctools-block block-plugin-id--entity-field-nodefield-page-section-1"> <div class="block__inner"> <div class="block__content"><div class="field field-node--field-page-section-1 field-formatter-entity-reference-revisions-entity-view field-name-field-page-section-1 field-type-entity-reference-revisions field-label-hidden has-single"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-nested-paragraph paragraph--view-mode-default"> <div class="field field-paragraph--field-paragraphs-demo field-formatter-entity-reference-revisions-entity-view field-name-field-paragraphs-demo field-type-entity-reference-revisions field-label-hidden has-single"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-lc-2cols-50-50 paragraph--view-mode-default"> <div class="field field-paragraph--field-lo-2cols-50-50-col1 field-formatter-entity-reference-revisions-entity-view field-name-field-lo-2cols-50-50-col1 field-type-entity-reference-revisions field-label-hidden has-single"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-lo-expandable-bluelight paragraph--view-mode-default"> <div class="equalheights clearfix text-formatted field field-paragraph--field-lo-expandable-bl-title field-formatter-text-default field-name-field-lo-expandable-bl-title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><p>What do I need before I can begin?</p> </div></div> </div> <div class="field field-paragraph--field-lo-expandable-bl-content field-formatter-entity-reference-revisions-entity-view field-name-field-lo-expandable-bl-content field-type-entity-reference-revisions field-label-hidden has-single"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><p>Additional helpful information for understanding the indirect costs of research includes the following.</p> <ul> <li>Sponsor program guidelines specific to eligible research expenses and budget preparation</li> <li>The University’s <a href="/media/108/download">Guideline on Full Cost Recovery in Research</a></li> </ul> </div></div> </div> </div> </div></div> </div> </div> </div></div> </div> </div> </div></div> </div> </div> </div></div> </div> </div></div> </div> <div data-id="entity-fieldnodefield-page-section-2" class="l-bl block block-config-provider--ctools-block block-plugin-id--entity-field-nodefield-page-section-2"> <div class="block__inner"> <div class="block__content"><div class="field field-node--field-page-section-2 field-formatter-entity-reference-revisions-entity-view field-name-field-page-section-2 field-type-entity-reference-revisions field-label-hidden has-multiple"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-nested-paragraph paragraph--view-mode-default"> <div class="field field-paragraph--field-paragraphs-demo field-formatter-entity-reference-revisions-entity-view field-name-field-paragraphs-demo field-type-entity-reference-revisions field-label-hidden has-multiple"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-title-icon-line paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-title-icon-line__title field-formatter-text-default field-name-field-title-icon-line__title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><h2>What are Indirect Costs of Research?</h2> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><p>While direct costs are expenses a Principal Investigator (PI) requests for the specific needs of a research project – such as student salaries, non-student salaries, travel, and equipment - indirect costs, sometimes referred to as overhead, are those that the university incurs to support research, which include, but are not limited to the following.</p> <ul> <li>Infrastructure: building upkeep, power, communications network</li> <li>Common equipment depreciation, life cycle costs</li> <li>Environmental and safety monitoring, security, hazardous waste disposal</li> <li>Ongoing regulatory and certification requirements (i.e. ethical review, biohazard or radiation safety, environmental assessments)</li> <li>Financial and agreement management</li> <li>Insurance<br> </li> </ul> <p>The <a href="http://www.planningandbudget.utoronto.ca">University Planning and Budget Office</a> calculates the indirect cost rate annually, and as of 2024, for every $1 received in direct research funding, the University incurs 61.7 cents in indirect costs.</p> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-title-icon-line paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-title-icon-line__title field-formatter-text-default field-name-field-title-icon-line__title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><h2>Rate for Calculating Indirect Costs</h2> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><p>When calculating the indirect costs in a research budget, use the maximum rate permitted by the sponsor. Alternatively, if the sponsor permits indirect costs but does not specify a rate, use the University’s standard rate of 40%.<br> </p> <p><br><span class="hs4">*Specific Sponsor Notes:</span></p> <ul> <li><em>For CIHR, SSHRC, and NSERC applications:</em> Do not request indirect costs. Indirect costs from the Tri-Agencies flow separately through a dedicated, centrally administered federal government program, described at the <a href="/research-data-analytics/federal-research-support-fund">Federal Research Support Fund</a> page</li> <li><em>For NIH applications</em> (including if you are a co-applicant): Use a rate of 8%</li> <li><em>For US Government funding</em> (including if you are a co-applicant): Use the University’s US Government rate of 53% on wages and salaries only for work taking place on campus and 13% on wages and salaries only for work taking place off campus. Do not include benefits.</li> <li>For all other rates, refer to the <a href="/media/108/download">University’s Guideline on Full Cost Recovery in Research</a></li> </ul> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-title-icon-line paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-title-icon-line__title field-formatter-text-default field-name-field-title-icon-line__title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><h2>How to Request Indirect Costs in Research Budgets</h2> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><p>When the sponsor permits indirect costs (i.e. overhead), request the costs in one of the following ways.<br> </p> <p><br><span class="hs4">Sponsor states that indirect costs are permitted as a percentage of direct costs</span></p> <p>Apply the sponsor’s indirect rate. For example, if the sponsor states that they permit a maximum of 25% in indirect costs, and your total direct cost budget is $100,000, then multiply your total direct costs by 25% to determine the indirect cost amount, which in this example would be $25,000. Your total budget would thus be $125,000.<br> </p> <ul style="list-style:none;margin-left:6.5em;"> <li>Sponsor’s indirect rate (%)   x   Total direct cost budget   =   Indirect cost amount</li> <li>Total direct cost budget   +   Indirect cost amount   =   Total budget<br> </li> </ul> <p>Note: Some sponsors permit indirect costs as a percentage of all direct costs, whereas some will permit indirect costs only on certain direct costs (e.g. salary). Be sure to follow their guidelines.<br> </p> <p><br><span class="hs4">Sponsor sets a maximum budget amount inclusive of indirect costs</span></p> <p>Follow the amount, and rate if provided, set by the sponsor. For example, if the sponsor permits a maximum budget of $100,000, inclusive of indirect costs to a maximum of 25%, the maximum direct cost amount would be $100,000/1.25 = $80,000. If the direct costs are $80,000, then the indirect costs would be $20,000.<br> </p> <ul style="list-style:none;margin-left:6.5em;"> <li>Maximum budget   /  (Sponsor’s indirect rate (%)   +   1)   =   Total direct costs</li> <li>Maximum budget   -   Total direct costs   =   Total indirect costs<br> </li> </ul> <p><br><span class="hs4">Sponsor does not specify a maximum rate</span></p> <p>Use the University’s standard rate of 40%. In the above example with a maximum budget of $100,000, direct costs would equal $100,000/1.4 = $71,428.57, and indirect costs at 40% would be $28,571.43<br> </p> <ul style="list-style:none;margin-left:6.5em;"> <li>Maximum budget   /  (University’s indirect rate (.40)   +   1)   =   Total direct costs</li> <li>Maximum budget   -   Total direct costs   =   Total indirect costs</li> </ul> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-title-icon-line paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-title-icon-line__title field-formatter-text-default field-name-field-title-icon-line__title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><h2>Indirect Cost Distribution</h2> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><p>Under the University’s budget model, all indirect costs are a source of revenue for the University’s divisions, which, in turn, distribute them as each division determines respectively. Indirect costs are not retained by VPRI.</p> <p>Each University of Toronto Research Account (UTRAC) includes an indirect cost amount if provided by the sponsor. The indirect cost amount is not available as a funding source for direct research costs.</p> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-title-icon-line paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-title-icon-line__title field-formatter-text-default field-name-field-title-icon-line__title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><h2>Requesting a Reduction or Waiver of the Maximum Indirect Cost Rate</h2> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><p>As a first step, the PI should discuss their rationale for seeking approval for a lower rate with their Department Chair, or equivalent, in advance of preparing an application.</p> <p>All exceptions to requesting the maximum permitted indirect cost rate, inclusive of any waivers, must then be approved by the Dean of their division, or the Vice-Principal Research for activities undertaken at UTSC or UTM.</p> <p>VPRI staff do not have authority to approve a lower indirect cost rate.</p> <p>Applicants may be apprehensive that requesting indirect costs will impede the competitiveness of their application. However, sponsors are aware of indirect costs principles and, if indirect costs are permitted, expect that these costs will be included in the application.</p> </div></div> </div> </div> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-nested-paragraph paragraph--view-mode-default"> <div class="field field-paragraph--field-paragraphs-demo field-formatter-entity-reference-revisions-entity-view field-name-field-paragraphs-demo field-type-entity-reference-revisions field-label-hidden has-multiple"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-title-icon-line paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-title-icon-line__title field-formatter-text-default field-name-field-title-icon-line__title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><h2>Forms & Downloads</h2> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><ul> <li><a href="/media/108/download">Guideline on Full Cost Recovery in Research</a></li> <li><a href="http://www.governingcouncil.utoronto.ca/Assets/Governing+Council+Digital+Assets/Policies/Policy/resagree.pdf">Research Administration Policy</a></li> <li><a href="/media/1075/download?inline">UTRAC User Guide</a></li> </ul> </div></div> </div> </div> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-nested-paragraph paragraph--view-mode-default"> <div class="field field-paragraph--field-paragraphs-demo field-formatter-entity-reference-revisions-entity-view field-name-field-paragraphs-demo field-type-entity-reference-revisions field-label-hidden has-multiple"><div class="field__items"><div class="field__item"><div class="paragraph paragraph--type-title-icon-line paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-title-icon-line__title field-formatter-text-default field-name-field-title-icon-line__title field-type-text field-label-hidden has-single"><div class="field__items"><div class="field__item"><h2>VPRI Role</h2> </div></div> </div> </div> </div><div class="field__item"><div class="paragraph paragraph--type-text paragraph--view-mode-default"> <div class="clearfix text-formatted field field-paragraph--field-text-demo field-formatter-text-default field-name-field-text-demo field-type-text-long field-label-hidden has-single"><div class="field__items"><div class="field__item"><ul> <li>Provide guidance about sponsor guidelines regarding indirect costs, including eligibility and rate</li> <li>Ensure that the appropriate indirect 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