Policy on indirect costs of research (ICR, overhead) in the Faculty of Agricultural, Life & Environmental Sciences (ALES).
- The current University of Alberta (UofA) indirect cost of research (ICR) rate is 30% and is calculated based on the total of direct costs. UofA policy states that ICR must be included in all research contracts, research grants, technical services agreements (TSA), research donations, and flow-through contracts, except where the sponsor has a published (publicly available) policy indicating a different rate or no ICR.
- Additional information on ICR can be found here (University’s overhead policy).
- When ICR is not permitted but administrative costs are allowed, Direct Grant Administration Costs (DGAC) should be included in the personnel category. See the ALES DGAC Policy for the amount to include in your budget.
- The principles above also apply for all research grants where a portion of funds flow to the UofA when you are a Co-PI (from the UofA).
- In the event that a sponsor does not have a publicly available (published) policy on indirect costs allowed, and the sponsor wishes to have a reduced rate of ICR applied, a letter/email of approval must be obtained from the Dean of ALES prior to your proposal submission and/or agreement negotiation and be included with the application when submitted through your Researcher Home Page. Reduced ICR (< 30%) will only be considered in well justified circumstances. For example, government (not including Tri-Agencies or TSAs) and charitable organizations (non-profits) who do not have a publicly available policy and who request a reduced rate will be considered for a 15% ICR rate.
- Requests for reduced ICR requested after a proposal or application has been submitted to the sponsor will not be considered.
- Funding provided in support of seminar series, guest speakers or other non-research related activities will be charged 10% overhead in the absence of a publicly available policy.
- Note: ICR will not apply to partner organizations matching funds on Tri-Agencies grant applications.
- Note: For technical service agreements (TSA) where ICR is not allowed, the UofA service provider should ensure they build in the required internal rate of return of 30% to their costs, particularly when a TSA is granted via a request for proposals (RFP).