The University of New Hampshire (UNH) has recently announced a new Indirect Cost Rate Agreement (ICRA) with the federal government. This agreement will allow UNH to recover indirect costs associated with sponsored research projects more efficiently and consistently.
First, let`s define what indirect costs are. These are expenses that are not directly tied to a specific research project but are necessary for conducting research activities, such as administrative and facilities costs. These expenses are typically recovered through an indirect cost rate negotiated with funding agencies like the federal government.
The new ICRA will increase UNH`s indirect cost rate from 49.5% to 54%. This means that for every dollar of direct costs associated with a sponsored project, UNH will be able to recover an additional 4.5 cents to cover indirect costs.
This rate increase is significant for UNH because it will allow them to recover more of the actual costs of conducting research. It is important to note that indirect cost recovery is not profit but rather a necessary part of conducting research. Without sufficient indirect cost recovery, institutions may need to divert resources from other areas to cover necessary expenses associated with research activities.
This ICRA was negotiated with the federal government`s Department of Health and Human Services, which oversees funding for a large portion of UNH`s research activities. The negotiations took several years and required significant documentation and evidence of UNH`s actual indirect costs. The negotiated rate of 54% is a reflection of these efforts and is expected to provide more consistent and fair recovery of indirect costs associated with UNH`s research activities.
It is important to note that this ICRA only applies to sponsored research projects with federal funding. Non-federal funding sources may have different indirect cost recovery rates or may not allow for indirect costs to be recovered at all.
Overall, the new ICRA between UNH and the federal government is a positive development for the university`s research activities. It will allow UNH to recover necessary indirect costs more efficiently and consistently, which will ultimately enable them to conduct more impactful research.