Research Policy Handbook

Memo

Reference:

• Research Policy Handbook 3.3
  Facilities & Administrative (Indirect Cost) and Fringe Benefits Rates: Definitions and Calculations

to:	Stanford Principal Investigators
from:	Charles Kruger Vice Provost, Dean of Research and Graduate Policy
date:	January 15, 1999
subject:	Changes in Indirect Cost Rates
cc:	Research Administrators

For all sponsored projects awarded to Stanford after September 1, 1998, Stanford University will apply the final negotiated rates for indirect costs in effect at the time of the initial award, and that rate will remain in effect throughout the life of the agreement. A-21 defines "the life of the agreement" as the total number of years approved for the project at the time of the initial award.

If there is a preliminary, provisional rate in effect at the time a project is awarded, that preliminary rate will be applied when the award is established, and will be adjusted at the time that the final rate for that year is established. That adjustment will be retroactive to the start of the award, and will then remain in effect for the rest of the life of the agreement. If the final rate is either increased or decreased from the provisional rate, the Sponsored Projects Office will provide guidance on any action required.

An exception to this general policy will be made during FY99 (9/1/98 - 8/31/99), for new project proposals submitted before Sept 1, 1998, and awarded after Sept 1, 1998. For those proposals, Stanford will maintain the FY98 indirect cost rate (55% for on-campus research) until the final FY99 rate is negotiated. At that time, the final FY99 rate will be applied to the project on a "from that point forward" basis, and that rate will remain in effect for the life of the agreement.

"New project proposals" include proposals requesting funding for the continuance of an award beyond the initially-approved period for the project. For example, if an award is originally approved for four years, then a proposal submitted for year 5 (or beyond) to continue the award for another "competitive segment" is a new proposal.

If you are currently in the latter years of a multi-year, multiple funding cycle project, and are now submitting a proposal for incremental funding within the originally-approved project period, Stanford will apply the FY98 rate (55% for on-campus research) to the award, and will maintain that rate for the life of the agreement. This will continue for projects awarded before 9/1/98, as long as you are within the "lifetime" of the project as defined above. Of course, any proposals for new projects, including new "competitive segments," submitted after 9/1/98 must use the current indirect cost rate.

Questions on this subject may be directed to Ann George in my office, or to the Grant and Contract Accounting administrator assigned to your School/department.

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Provider: Office of the Vice Provost and Dean of Research and Graduate Policy, Stanford University
Contact: Assistant Dean of Research
Last updated: Jan 15, 1999

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