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Under the provisions of Office and Management Budget Circular A-21, indirect costs are research-related expenditures that are not specifically linked to a grant project. Indirect costs are reimbursed by the federal government over and above the money awarded directly under a federal research contract...

Author: By Gady A. Epstein, | Title: Coming Down on the Medical School | 2/11/1991 | See Source »

...Medical School currently has a provisional agreement with the Department of Health and Human Services (HHS) for an indirect cost rate of 88 percent. This means that for every dollar the government awards in federal grants to the Medical School, the University can charge an additional 88 cents for overhead on that research...

Author: By Gady A. Epstein, | Title: Coming Down on the Medical School | 2/11/1991 | See Source »

Overhead can include such-costs as depreciation on buildings and equipment, operation and maintenance, administration and libraries. Lighting, heating, janitorial services and portions of administrative salaries at every level in the University can be billed as indirect costs, as long as the costs can be justified as research-related...

Author: By Gady A. Epstein, | Title: Coming Down on the Medical School | 2/11/1991 | See Source »

Private universities that are heavily involved in government research, such as Harvard and Stanford, tend to be aggressive in seeking a high rate of indirect cost. The institutions do need money, professors and government officials agree, to support massive new laboratories and expensive library systems that aid research...

Author: By Gady A. Epstein, | Title: Coming Down on the Medical School | 2/11/1991 | See Source »

...congressional action has spurred inquiries by three other federal bodies, including a criminal investigation by Naval Investigative Services. The result could be an across-the-board reevaluation, and perhaps reduction, of indirect cost rates at private universities...

Author: By Gady A. Epstein, | Title: Coming Down on the Medical School | 2/11/1991 | See Source »

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