UL Lafayette: ORGS: Current News & Policy Updates: 06-24-2008

Office of Research and Sponsored Programs

UPCOMING DATES:

Notice to UL Lafayette Research Community: Establishment of New Indirect Cost Rates

ORSP Main > Current News & Policy Updates > UL 06-24-2008

In April of this year, we notified the campus community through the Deans and Department Heads that the University had applied for a new federally negotiated indirect cost rate as the current rate of 44% salaries and wages would be expiring on June 30, 2008. We have received notice from the Department of Health and Human Services regarding the determination of the new indirect cost rate to be effective July 1, 2008.

All proposals for external funding submitted on or after July 1, 2008 must utilize the new indirect cost rate in the proposal budget. The new rates will also apply to fixed price contracts.

The new rates approved for use on grants, contracts and other agreements are as follows:

Effective Period	Rate	Location	Applicable to
7/1/06 - 6/30/08	44% Direct Salaries and Wages	On Campus	All Programs
7/1/08 - 6/30/12	43% Modified Total Direct Costs (MTDC)	On Campus	Organized Research
7/1/08 - 6/30/12	43% Modified Total Direct Costs (MTDC)	On Campus	Instruction
7/1/08 - 6/30/12	26% Modified Total Direct Costs (MTDC)	Off Campus	All Programs

The University will continue its policy of normally allowing a lower rate on state and local grants and contracts and on those from federal and state agencies located on site as follows:

Rate	Location	Applicable to
25% Modified Total Direct Costs (MTDC)	On Campus	State & Local Agencies
25% Total Costs	On Campus	Federal agencies on campus or in Research Park

As in the past, the university will honor a lower rate should a program or agency have a formally-established and consistently-applied indirect cost limit.

For existing grants and contracts, the University will honor any rate that is currently being used. It will also honor any rate that the University has previously approved for use in a proposal for a future grant or contract. However, in the case where a grant or contract is amended to reflect a new or revised budget, the University reserves the right to include in the amendment the new indirect cost rate.

Please note that the base on which indirect costs are to be calculated has changed from salaries and wages to Modified total Direct Costs (MTDC). MTDC includes all direct costs of the project, except for the following:

• equipment over $5,000
• participant costs
• capital expenditures
• tuition and fees
• rental or lease costs of offsite facilities
• scholarships and fellowships
• the portion of each subgrant or subcontract in excess of the first $25,000.

If you have any questions about the changes in the indirect cost rates or how they should be applied, please feel free to contact Carl Frantz (2-5811 or cdf@louisiana.edu) or Ruth Landry (2-5811 or rwl@louisiana.edu) in the Office of Research and Sponsored Programs.

Document last revised Wednesday, August 20, 2008 10:48 AM