Please refer to Sponsored Programs Office (SPO) in the Office of Research for additional background and policy on Indirect Cost Waivers.
Reduction in Indirect Costs (IDC)/F&A
USU’s includes indirect costs on all its sponsored projects. The indirect cost rate is a federally negotiated rate based on the costs of doing research at the university. A reduction in the IDC rate is allowed when either one of the following criteria is met.
- The funding opportunity restricts or prohibits reimbursement of USU’s full indirect cost rate.
- The sponsor has a publicly published policy or statute that restricts or prohibits reimbursement of USU’s full indirect cost rate.
If neither of these criteria apply and the full rate will not be used, this is considered a waiver of indirect costs.
Waiver of Indirect Costs
Reduction or elimination of F&A costs on a sponsored project are allowed. The PI should carefully consult with the Grant Proposal Development Specialist and/or Associate Dean for Research. A concise but detailed justification is needed on the Internal Waiver F&A Form.
The Dean, much like the Office of Research, believes that F&A funds are an incredibly important part of USU’s research development mission. Therefore, waivers are not approved on a regular basis. Waivers are only approved in circumstances in which the elimination or reduction of F&A funds is deemed necessary and of substantial benefit to the PI, college, and university.The Associate Dean for Research and/or the Dean will make these determinations.
Once a waiver of F&A (in full or in part) has been approved, the Internal Waiver of F&A Form should be attached to the Kuali proposal with a justification for why a waiver of indirect costs is necessary. This form requires approval by the lead unit’s Dean/VP and the Vice President for Research (VPR).
Principal Investigators are not authorized to negotiate a reduction or waiver of indirect costs with the sponsor. Should the need for negotiation be anticipated, the PI should work with Proposal Development Specialists in the College of Arts & Sciences to contact Sponsored Programs well in advance of budget development and proposal submission.