Grant Budgeting and Indirect Cost Recovery
The grant or contract must provide sufficient financial provisions to purchase the equipment, supplies, and research assistance necessary for the project. The annual budget of the Dean of the Faculty may not be used to meet such expenses unless agreed to by the Dean of the Faculty. Equipment and supplies purchased by funds in the grant or contract are considered property of the College. Subject to negotiation and approval the faculty member and the College may agree to the purchase and/or transfer of research-related equipment should the faculty member not continue at Rhodes.
Rhodes currently has a federally approved rate for indirect costs of 42%. In drafting grant proposals, departments should budget 42% for indirect costs. Grant proposals with salaries should include a budget for fringe benefits at the approved rate of 28% for direct salaries and 8% for student wages. Funds derived from indirect cost recovery will first be allocated to the income accounts of the College’s operating budget to support the cost of administering the grant and utilization of campus facilities. In support of research activities, the College may allocate up to 50% of overhead funds received from a successful grant application to augment existing research activities of the department, subject to the approval of the Dean of the Faculty. Allocation of funds back to the department will only occur when a specific grant has an indirect cost recovery rate which is greater than 21% (1/2 of 42% rate). This policy will be reviewed on a periodic basis to determine the actual expenses incurred by the College to administer the grants awarded. Based upon these findings, the indirect cost allocation rate may be adjusted at any time during the academic year. Questions concerning budgeting or indirect cost recovery should be directed to the Comptroller.