UF IDC Rate Agreement: Understanding the University of Florida`s Indirect Cost Rates

The University of Florida (UF) is one of the largest public research universities in the United States. With an annual research budget of over $800 million, UF conducts cutting-edge research across a wide range of disciplines, from engineering and medicine to agriculture and the arts. Like most universities, UF charges indirect costs (IDC) on grant and contract awards to cover the infrastructure and administrative expenses associated with research projects. Understanding UF`s IDC rate agreement is crucial for researchers who want to maximize their funding opportunities and ensure compliance with federal regulations.

What are Indirect Costs?

Indirect costs, also known as Facilities and Administrative (F&A) costs, are the expenses that support the infrastructure and general operations of a university. These costs are not directly related to a specific research project, but they are necessary for conducting research. Examples of indirect costs include:

– Utilities and maintenance of buildings and facilities

– Office supplies and equipment

– Computer and information technology services

– Library resources and services

– Administrative and clerical support

– Compliance with federal regulations

Indirect costs are calculated as a percentage of the direct costs of a research project, which are the costs that are directly attributable to the project, such as salaries, supplies, and equipment.

The UF IDC Rate Agreement

UF`s IDC rate agreement is negotiated with the US Department of Health and Human Services (DHHS), which sets the standards for IDC rates for universities that receive federal research funding. UF`s current IDC rate agreement is valid from July 1, 2021, through June 30, 2025, and includes three different rates:

– Organized Research: 55%

– Instruction: 58.5%

– Other Sponsored Activities: 27%

Organized Research includes projects that are primarily focused on creating new knowledge or developing new technologies, such as laboratory research, clinical trials, or field studies. Instruction includes projects that are primarily focused on teaching, such as developing new courses or instructional materials. Other Sponsored Activities includes projects that do not fit into either of the above categories, such as conferences, workshops, or outreach programs.

It is important to note that these rates are the maximum allowable rates that UF can charge for IDC on federal research grants and contracts. The actual IDC rate may be lower depending on the sponsor`s policy or the type of project.

How to Calculate IDC

To calculate the IDC for a research project, multiply the direct costs of the project by the applicable IDC rate. For example, if a research project has $100,000 in direct costs and falls under the Organized Research category, the IDC would be $55,000 (55% of $100,000), bringing the total project cost to $155,000. It is important to include IDC in the budget and justification sections of grant proposals and to ensure that IDC is properly charged and accounted for in project expenditures.

Conclusion

Indirect costs are a necessary part of conducting research, and understanding UF`s IDC rate agreement is crucial for researchers who want to maximize their funding opportunities and ensure compliance with federal regulations. UF`s current IDC rates are 55% for Organized Research, 58.5% for Instruction, and 27% for Other Sponsored Activities. By properly calculating and accounting for IDC, researchers can help ensure the long-term success of their projects and the university`s research enterprise as a whole.