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Indirect Cost Recovery Procedure
1.
Purpose:
- The purpose of this procedure is to outline the process for the calculation and distribution of indirect research costs associated with externally funded research activities.
2.
Scope:
- This policy applies to all research carried out by University of Canberra staff, students, and affiliates (academic, professional, honorary appointments) under the auspices of the University of Canberra.
- Consultancy income and levies are excluded from this policy. For consultancy income refer to Consultancy Management Procedure.
3.
Procedure:
- All external research funding applications must include a minimum indirect cost recovery levy of 25% of the research costs (e.g., if the cost of the research is $100,000, the indirect research costs are $25,000 resulting in a total funding submission of $125,000), unless one of the following exemptions applies:
- The application is to a funding body that explicitly prohibits the inclusion of indirect research costs
- The funding body stipulates an indirect cost rate of less than 25%, in which case the maximum permissible rate must be included
- The application is for funding by Australian Charitable Trusts/Foundations
- The application is for funding from a Not-For-Profit organisation which have a published policy stating that they do not pay indirect costs
- The application is for use of Bona-fide donations
- The application is specifically for a student stipend.
- The Deputy Vice-Chancellor, Research & Enterprise (DVCR&E) may approve a reduced indirect cost recovery rate in exceptional circumstances. Researchers seeking a reduced rate must submit a ‘Request for Reduction of Indirect Cost Recovery Charge’ form, that provides a justification of the reduced rate, to Research Services to process.
- The recovery of indirect costs associated with externally funded research activities will be distributed between the relevant Faculty and the Office of the DVCR&E, journaled monthly by Grant Accounting Services, as follows:
- For grants less than $10,000 the full levy is returned to the faculty
- For grants greater than $10,000 the levy is distributed as follows:
- 40% of the levy goes to the R&E portfolio (capped at $5,000 per award) and 60% to the faculty, for reinvestment in research-activities. Where the levy to R&E is capped, the remaining levy is allocated to the faculty.
- Where the named ºÚÁϳԹÏÍø Chief Investigators are in different faculties the IDC is split proportionately between the relevant faculties based on the number of Chief Investigators, unless a different arrangement is specifically negotiated between the faculties.
- Indirect costs recovered are to be used to support additional research and research related activities.
4.
Roles and Responsibilities:
Who | Responsibilities |
Researchers | Ensure that all applications include 25% indirect research costs unless exempt (see Clause 3.1). Any request for exemption from inclusion of indirect costs and/or a reduced rate must be made to the DVCRE on the required form. |
Grant accounting services | Ensure that the indirect research cost income is distributed as per this procedure. |
DVCRE and Faculties | Ensure that indirect research cost income is used to support research-related activities. Ensure that indirect cost recovery income use is reported annually. |
5.
Implementation and Reporting:
- Grant Accounting Services will ensure that the levy is journaled according to this procedure.
- The DVCRE will report annually to Faculties on use of indirect cost income allocated to DVCRE.
- Each Faculty will report annually to the DVCRE on use of indirect cost income, including proposed future use.
6.
Governing Policy and Legislation:
- This procedure is governed by the University of Canberra Act 1989 (ACT).
7.
Supporting Information:
Supporting information for this procedure:
- Charter of Conduct and Values
- Consultancy Management Procedure
- Research Cost Centre Management Policy
- Research Cost Centre Management Procedure
- Delegations of Authority Policy
- Responsible Conduct of Research Policy
- Finance Governance Policy