R10 – Recovery Costs of Research

Originator: Director, Applied Research and Commercialization
Approver: President’s Council
Effective: November 14, 2006
Replaces: New

1. Purpose

1.1

This policy provides direction for the recovery of costs of research where appropriate.

2. Policy

2.1

The College, in consultation with the principal investigator, will, where appropriate, charge all costs for research conducted based on external funding.

2.2

Since project requirements may vary from project to project, it is advised that all principal investigators consult with the Director of Applied Research & Commercialization when preparing the costs component of project budgets.

2.3

Where grants for research allow for the recovery of indirect costs, researchers must include them in their proposals. Many charitable organizations and foundations have formal rules against paying for indirect costs while others have guidelines providing for certain indirect costs.

3. Principles for Developing Budget/Cost Proposals for Research

3.1

Full recovery of all direct costs including but not limited to total labour cost, materials and supplies, travel and accommodation, external consultants, equipment (purchase, rental, maintenance, taxes and installation), necessary renovations and computer time. Labour costs should include a cost factor for faculty and other staff members’ time based on salary (including benefits and payroll levy).

3.2

Full recovery of indirect costs. The following are amongst those typically included in indirect costs: Comptrollers Office (purchasing, budgets & grants, payroll), Human Resources, Physical Plant, General Administration (research administration, legal counsel, institutional review committees), Faculty Administration (Dean and Department offices, review committees), and access to general library and computer services.

4. Research and Other Academic and Service Programs Contracts with Industrial/Private Sector Sponsors

4.1

Indirect costs may be identified as a separate budget item or expressed as a function of total cost. Other alternative methods of costing can be considered provided that full costs are recovered.

5. Variations in Indirect Cost Recovery

5.1

It is recognized that the ability of the College to subsidize contract research or other academic and service programs through the absorption of indirect costs is limited.

6. Principles of In-Kind Contributions

6.1

Some agencies require that the College make “contributions” to the costs of certain projects. In this case, contributions should be calculated to express the cost of the faculty members’ time (including associated indirect costs) and shown on the budget as a contribution of cost. This contribution must be approved, in advance of submission of proposal, by the Chair, Dean and Vice-President, Academic and Research.

7. Guidelines for Distinction of Types of Awards

7.1

The determination of whether a project is grant or contract oriented has to do with the nature of the work to be performed and the conditions under which that work is performed. The following information will be of use to persons preparing research project applications in assisting them to identify the funding nature of their applications.

7.2

Grant: A grant is financial support for an investigator, or investigators, or group or centre or institute conducting research in a particular subject area or field, without any formal detailed stipulations as to the direction or outcomes of such research.

7.2.1 The research funded by a grant can be initiated by the investigator(s), group, and research centre/institute conducting it or by the grantor. The following characteristics are also normally present:

• 7.2.1.1 Funds traditionally cover research assistants (students), technicians, equipment, supplies and travel. The funds are not attached to a specific performance outcome and cannot be retracted as a function of performance. Equipment purchased belongs to the College.
• 7.2.1.2 In many cases, there is no direct or indirect remuneration to the principal investigator or co-investigators.
• 7.2.1.3 Objectives are defined in a general fashion.
• 7.2.1.4 No specific transfer of results to the grantor; however a final report stating the results of the research is usually submitted to the grantor.
• 7.2.1.5 Knowledge created is “transferred” by peer-approved means at discretion of investigator(s): publications, workshops, seminars.
• 7.2.1.6 The College owns any innovations arising from the project (e.g. software, new drug, new product/process), however, the College is committed to recognizing the generation of work and inventions and related Intellectual Property rights by employees in accordance with Policy A9 – Intellectual Property and Copyright.

7.3

Contract: A contract is an agreement between legal entities, namely the sponsor and the College, to provide financial support for an investigator or investigators, to conduct research in a particular subject area or field under specific stipulations and conditions. These conditions may:

7.3.1 specifically outline the scope and nature of the research;

7.3.2 set the time period(s) for the activity;

7.3.3 define the deliverables;

7.3.4 establish ownership, patent rights and licensing arrangements;

7.3.5 provide for confidentiality of information supplied and created;

7.3.6 establish budget approvals and payment schedules (payment may be made as work accomplished is invoiced);

7.3.7 establish considerations for acceptance and/or termination;

7.3.8 limit liability of participants, and other matters that may be appropriate to the circumstances.

8. Rates for, and Distribution of, Recovery of Costs of Research

8.1

Standard Rates for recovery of costs of research, when applicable, will be determined by Applied Research & Commercialization, in consultation with the Comptrollers Office. Project-specific deviations from standard rates must be approved by the Director, Applied Research & Commercialization;

8.2

Distribution of Recovered Costs of Research will be in accordance with procedures determined by Applied Research & Commercialization.

Related Policies

A9 – Intellectual Property and Copyright
F9 – Conflict of Interest
H1 – Research Involving Human Subjects
H2 – Integrity in Research and Scholarship
H3 – Animal Care and Research Policy
H4 – Conflict of Interest in Research Policy
H5 – Students Rights in the Conduct of Research Policy
H6 – Research in the Yukon, Northwest Territories and Nunavut Policy
H7 – Research Involving Biohazards and Radioactive Materials Adjunct Researchers Policy
BPG104 – Development & Administration of Agreements – Corporate Legal Services