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Enhancing the Health of Veterans through Research and Education

Indirect Costs

Indirect Cost Rate

Research

The term Indirect costs (IDC) denotes funds that are removed from the account to support the administrative costs of operating the corporation. These costs are incurred for common or joint objectives and, therefore, cannot be identified readily and specifically with a particular research project or an education activity. These costs are allocated to the direct activities through the use of the IDC cost rate. The PVARF has no other mechanism than indirect costs to pay for its administrative expenses. Investigators should plan for IDC cost assessments when developing project budgets and communicate this need to funding sources.

The Foundations Federal Negotiated Indirect Cost Rate is 23.3%. The IDC rate for industry-sponsored research is 25%. The IDC rate for projects sponsored by scientific foundations will be the rate allowed by the organization or 25%, whichever is less IDC will not be assessed on funds from non-profit organizations that have a stated policy of not providing IDC. There will be no IDC assessment for unrestricted donations by individuals, but donations from commercial entities may be assessed.

Education

The IDC assessed on an education account will be determined based on the following criteria:

Unrestricted Education Grants: The funds are used to invest in education purchases only. The indirect cost assessed will be 0%. If an employee is hired under this grant then a onetime 3% fee based on the employee’s salary will be assessed.

Educational Grants: The funds are used to plan and conduct conferences or meetings. The indirect cost assessed will be 10%. This cost will include payment, employee hiring, deposit processing and human resource services. The cost of processing credit cards will be the actual transaction fees assessed by the processing bank.

Any charges requested under an Education account that are research related will be assessed the 25% Research IDC rate.