New indirect cost rates have now been formally established for the University of Wisconsin-Madison.  The rates, for the period July 1, 2000 through June 30, 2004, are as follows:
 

These rates were audited by the Department of Health and Human Services, Division of Cost Allocation and established in a Rate Agreement dated December 13, 2001.  This date is important because it is required on many Federal grant application forms.

When preparing extramural budgets, please remember that under MTDC (Modified Total Direct Costs) the applicable indirect cost rate is applied against all budget items except equipment, alterations and renovations, subagreement costs in excess of $25,000 per agreement, equipment and space rental costs, and patient care costs.

Due to the number of active programs and pending applications that include previously negotiated indirect cost rates, a transition from the old to the new rates will be administered as follows:

• New and competing renewal applications submitted after receipt of this memo should use the new rates effectively immediately.
• Rates included in applications submitted prior to receipt of this memo will be accepted by the University for the life of that non-competing segment unless the Sponsor increases the indirect cost rate to the new rate and provides the additional funding.
• Rates currently in effect on all active awards will be continued for the balance of that funded period.  In addition, non-competing continuation applications or other requests to obtain release of precommitted support under these awards may continue to use these rates.

Questions concerning indirect cost rates on proposals and awards should be directed to your School/College Research Administrator or the appropriate Federal or Nonfederal Pre-Award Grant and Contract Specialist in Research and Sponsored Programs.  Questions concerning active projects should be directed to your School/College Research Administrator or the appropriate Federal or Nonfederal Post-award Accountant in Research and Sponsored Programs.
 

xc:  School/College Research Administrators