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Most of this funding is dedicated to maintaining and upgrading its research facilities, as well as supporting the management and administration of SFU's research enterprise. Internally, the Research Support Fund grant is divided between the university and the initiating faculty, as is the case with overheads realized from research funded through contracts. The initiating faculties report each year on the use of these funds, so that the University can fulfil its reporting requirements.

Additional details about RSF allocations at SFU can be found here.

The indirect costs revenue contributes to SFU's ability to provide a supportive research environment through the provision of staff and services that allow researchers to pursue their research programs and seek new funding opportunities. It also enables SFU to provide research facilities and other resources that help to attract and retain high-caliber researchers and graduate students. In turn, the presence of leading researchers and highly qualified personnel ensures SFU's continued participation in major, multi-institutional and international research initiatives.

Normally, no You are to include the indirect costs in addition to the direct costs of research. It is intended that the indirect costs are built into each budget item so that the funder understands that the indirect costs are a legitimate component of the actual cost of research and not an “added” cost. However, if the indirect costs are not built into the budget, as shown by the examples above, it can result in the investigator receiving less research funds than they might have expected.

Indirect costs of research funded by the Tri-Agency are partially recovered through the federal Research Support Fund grant as a lump sum at the end of each year.

Yes. 

No. Grants for which 100% of the funds are to be applied toward the purchase of equipment, and not directly connected with a specific research project, are exempt from indirect cost recovery.

It is the University’s responsibility, through the Office of VPRI and ORS, to set or adjust indirect rates charged to funders. Faculty members are not authorized to negotiate indirect costs rate with funders independently. Any variations in overhead rates need to be approved by Director, Research Services.

Most Canadian universities charge between 15-30% of direct costs on grants, and 40% on contracts and agreements. Most U.S. universities have negotiated federal indirect cost rates that range between 50-90% of salaries, wages and benefits.

No. Indirect costs are normally included in the price of goods and services worldwide.

Because in some cases indirect costs may not be applied to all items in a budget, it is recommended that budgets should build the indirect costs into each budget line item. For example, personnel costs are calculated as (salary + benefits) x 125% = total salary cost. When a government or nonprofit agency requires that indirect costs be presented as a separate line item, budgets should include an indirect costs line item equal to 25% (or other, agency-specific rate) of the total costs.

Yes. If SFU is a sub-recipient of funds, SFU will apply the same overhead rate as a primary recipient of funds. In both cases, PIs and their Co-PIs must address this issue up front in initial discussions of transfers so the appropriate indirect costs for each institution is included in the transfer of funds.

Indirect costs of research will be automatically deducted from your research account at the negotiated rate as expenses are incurred. In some cases (i.e fixed fee contracts), Research Accounting deducts overhead as soon as they set up a project account. In case of cost-reimbursable contracts, overhead is applied to incurred expenses rather than the full contract amount.

Indirect costs of research will be automatically deducted from your research account at the negotiated rate as expenses are incurred. In some cases (i.e fixed fee contracts), Research Accounting deducts overhead as soon as they set up a project account. In case of cost-reimbursable contracts, overhead is applied to incurred expenses rather than the full contract amount.

No. Overhead will be recovered for institutional costs before additional funds are agreed to be paid to investigators.

Last updated: June 16, 2021