FACILITIES AND ADMINISTRATION (INDIRECT) COST RATES

AND

WORKING WITH THE CSU, CHICO RESEARCH FOUNDATION

Indirect Cost Rate: The CSU, Chico Research Foundation has two sets of indirect cost rates (also called Facilities and Administration rates).  Through a process prescribed by the Federal Government, the Foundation has the following rates for projects using federal funds:

1. 42% of salaries and wages for on-campus projects
2. 18.5% of salaries and wages for off-campus projects

See the definitions in the attachment for determining when to apply each rate.

For all other projects (non-federal funds), the indirect cost rate is 20% of total direct costs.

 Exceptions to these indirect cost rates can be made by the Director of Sponsored Programs alone and only in rare instances. They should never be assumed or discussed with potential funding sources without prior Sponsored Programs approval.

Working with the CSU, Chico Research Foundation: The Foundation, on behalf of CSU, Chico, works with community organizations in mutually beneficial situations.  The mutual benefits of such relationship are decided on a project-by-project basis by weighing how a particular project meets three central missions of the University.  These missions are:

1. Provide professional development opportunities not otherwise available for faculty.
2. Provide real life learning opportunities for students not otherwise available.
3. Provide opportunities for working collaboratively with the community in which the University operates and resides.

Projects with which the Foundation will become involved also must be evaluated on the potential risks and liabilities to the Foundation that could be incurred by participation.

Generally, the Foundation becomes involved collaboratively in community-oriented funded projects where University faculty will be the project directors, students will be directly involved in conducting project activities, and the Foundation will be the recipient of the award (grant or contract).  While it is understood that outside (of the University) consultants or subcontractors may be necessary for the successful conduct of a project, generally the Foundation expects that campus expertise and capabilities will be used first, if available.  Also, usually the Foundation will not become involved where outside consultants and/or subcontractors will conduct the majority of the work of a project.

All projects in which the Foundation will become involved must receive approval through the University’s approval process.  Approval of any project involvement ultimately resides in the Office of Research and Sponsored Programs, which has final authority over budgets, indirect cost rates, and all contractual (including subcontracts) matters.  Therefore, any project seeking Foundation involvement should be brought to the attention of the Office of Research and Sponsored Programs prior to proposal submission to a funding source.