Guidelines For Allocation And Use Of Research Overheads
Background
Under the Sponsored Research Administrative Agreement with UBC, (September 2003) overhead funds generated as a result of commercially funded research activity at the C&W site are split between UBC and C&W institutions. Overhead charges of 25% on research projects are collected centrally at UBC and C&W. Clinical trials overheads are split 20% to UBC and 80% to C&W while lab based overheads are split 50% each. These guidelines apply to the funds at C&W and UBC.
In May 2007 a UBC led Task Force was assembled to review the current recovery of indirect costs of research at UBC and the affiliated teaching hospitals and to make recommendations to the VP Research for a revised system that would create a sustainable research environment, streamline the system for processing sponsored research and increase services to researchers. Effective October 1, 2008 the University accepted the recommendations that state that all funded research grants, contracts and agreements should be assessed overhead at a single rate of 25% of total direct costs. This replaces the current existence of variable rates applied to different research agreements.
Overhead recovered from projects carried out at Health Authority (hospital) sites is shared as follows:
Clinical Trials: UBC – 20%, Hospital – 80%
Other projects: UBC – 50%, Hospital – 50%
These guidelines apply to the funds at C&W and UBC.
The Task Force on Clinical Trial Overheads tabled their report in January 1996 which recommended that 50% of the overhead funds received by C&W be allocated back to the individual investigator who generated them. Subsequently, the C&W executive has approved this proposed allocation.
Principles for the Use of the Funds
The principle for the use of overhead funds is that they are to be used to enhance and to strengthen the research infrastructure of the Investigator's "unit". The funds are intended to be used for "value added" research activities. Pooled use of funds between investigators in order to share resources and/or to achieve a common research purpose is encouraged.
Examples of research expenses which can be charged to these funds are:
- Reimbursement to other account for fellowships, scholarships, etc, or for salaries for such items as pooled clerical or technical support staff; (due to the volatility of these revenues no salary appointments may be made directly against these accounts);
- Seminars and conferences related to the research field of the investigator;
- Equipment, preferably shared, which will enhance the research capabilities of the unit/department (equipment purchases must be made through C&W Purchasing Dept.);
- Service contracts for research related equipment;
- Reasonable development expenses used towards securing research opportunities and/or which enhance the research capabilities of the unit (e.g. Grant preparation expenses);
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Examples of expenses which cannot be charged to these funds:
- Personal remuneration to the principal investigator responsible for generating the funds;
- Non-mandatory staff benefits costs such as parking, living expenses, bonuses, etc.;
- Non-research related expenses.
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Management of Funds
A separate cost centre will be created for each investigator as required. The distribution of funds will be managed through the Research Institute's Finance Office. Allocation of these funds to each investigator will be made at the end of each fiscal quarter and will be calculated at 50% of the actual overhead funds received by C&W which were generated during the quarter.
Funds will be accessible by submitting a completed payment requisition form to the Research Institute's Finance Office to ensure that the expense item is acceptable within the approved guidelines. The C&W VP Research & Education has final responsibility and authority for determining whether a particular use of these funds falls within the approved guidelines. The hospital's current policies and procedures on payments from C&W funds will apply. Operating statements will be made available to the investigator approximately 3 weeks after period-end by e-mail notification to investigators or their designates.
Funds not expended by the end of a fiscal year (March 31) will be pooled at the research institute level to support future research activities at the C&W site. Future requests for research support are to be submitted by completing the funding request form.
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