Chicago Association for Research and Education in Science
INDIRECT COSTS POLICY

The conduct of research and education in an academic health sciences environment requires a complex and expensive administrative and physical infrastructure. The cost of maintaining this infrastructure must, except where disallowed by internal policy or by the source of the funding, be shared by the research and education community and be included in the budget of each individual research and education project or activity. When preparing budget requests, indirect costs (overhead) are to be added to direct costs.

It is the intent of the Board of Directors that the following guidelines be followed while maintaining flexibility and allowing the Executive Director (or designee) and the President to deviate when it is in the best interest of CARES or the affected investigator. Significant deviations from the guidelines listed below should be reported to the Board.

1. Indirects are not levied on “one-time” deposits of $1,000 or less.
2. Indirects are not levied on deposits from sponsors with a policy against indirects.
3. The rate negotiated with the NIH is currently 21% and subject to annual re-negotiation.
4. The rate to be charged on commercially-sponsored research is 26%.
5. The following overhead rates apply for funding transferred from LU to CARES.
1. University (departmental funds) will not be charged overhead.
2. Funds derived from an NIH grant being administered at Loyola will be charged the rate currently negotiated between CARES and the NIH.
3. Funds derived from a commercial source (i.e., pharmaceutical companies) will be charged 26%.
4. Funds derived from a source which pays no overhead to Loyola will not be charged overhead.

6. Fee-for-service work performed by a Research Service facility or investigator (e.g. animal care and housing or specialized analyses in a research laboratory) should incorporate the appropriate CARES overhead onto the fee charged. For example, if animals are to be housed at Hines for an investigator whose grant is being administered at Loyola, the per diem rate quoted and charged by the VMU should be increased to include CARES overhead. (Actual costs as determined by the VMU for a procedure/service + overhead = Service fee charged.)
7. Start-Up, IRB and Other One-Time Fees
1. a. No overhead is charged on the Pharmacy Start-Up Fee.
2. No overhead is charged on the Regulatory Document Preparation Fee.
3. No overhead is charged on the IRB Review Fee.
4. No overhead is charged on the IRB Facility Human Protection Program Fee.
5. No overhead is charged on the IRB Amendment Fee which is shared equally between the Investigator and the IRB.
6. No overhead is charged on the IRB Continuing Review Fee which is shared equally between the investigator and the IRB.