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Distribution of Indirect Costs

Administrative Policy Manual Chapter IV/ General College Policies

K. Policy on Distribution of Administrative/Indirect Costs

The faculty, staff, and students at Beloit College, working with the Office of Foundation and Corporate Support, are encouraged to seek outside funding for appropriate college-based activities. Unless such requests are specifically prohibited by the granting agency or foundation, applications for grant support from an external agency or foundation must include a request for funds to recover administrative/indirect costs. Administrative/indirect cost rates for federal grants are negotiated between the college and the federal government, with some agencies stipulating a predetermined rate independent of the college’s negotiated administrative/indirect cost rate. Private foundations often have a predetermined administrative/indirect cost rate.

Beginning with proposals submitted on or before March 1, 2010, all funds received to cover administrative/indirect costs are incurred by the college in administering external awards, such as heat, light, water, space use, as well as the many other services provided to enable the grant to be undertaken, such as custodial, secretarial, and accounting activities. Distribution of these funds represents an opportunity to invest strategically in the professional development of the primary faculty involved and to advance strategic initiatives that are vital to the success of undergraduate education in the liberal arts model. The distribution of administrative/indirect costs is as follows:

  • one-third will be administered by the department/program(s) of the primary Principal Investigator(s) (PI) to invest in the professional development of the PI(s) and to ensure that the larger objectives of the project are met. A set of budget principles for the strategic use of these funds will be outlined as a part of the proposal development and approval process. While such funds exist, the relevant parties will submit annually a report that accounts for their use to the Department’s cognizant Vice President (in the case of faculty, the Provost and Dean of the College) and the Director of Accounting.
  • one-third will be distributed to the Dean’s Fund for Strategic Initiatives, a discretionary fund that will be used to advance strategic initiatives (including matching funds for other grant opportunities) that are identified by the dean in consultation with the Academic Strategic Planning Committee; and
  • one-third will be distributed to the operating budget of the college to offset the costs of the project support.

June 2010