The University of Wisconsin-Madison
Research and Sponsored Programs
Notice 97-7
April 2, 1997

TO: Deans, Directors, and Department Chairpersons and Secretaries
(for distribution to all Faculty)
FROM: William J. Vance, Assistant Dean
SUBJECT: Policy on Charging Indirect Costs to State Agency Projects

In June, 1987 Research Administration-Financial Notice 87-6 announced a University policy of requiring indirect costs and tuition remission as budget line items in all applications submitted to State of Wisconsin agencies. This policy has worked very well in assuring that awards from State agencies using Federal pass-through funding include all required costs. The purpose of this Notice is to update the policy to reflect the elimination of tuition remission charges on grants and contracts.

Therefore, the policy now requires that:

  1. All extramural applications to State of Wisconsin agencies include indirect costs as a budget line item. Each budget should include a footnote which states the following, "If funded with State GPR funds, or other non-federal funds, indirect costs should be excluded from the award".

  2.  
  3. Informal budget quotations made to State agency representatives include indirect costs since all awards resulting from these discussions will be assessed appropriate indirect costs if Federal dollars are used to fund the project.
The Table of Indirect Cost Rates indicates the appropriate rate to use for the various State agencies. Additional information related to this policy can be found in RSP Notice 95-1 entitled, "Collection of Indirect Costs".

Questions may be directed to Diane Barrett, Assistant Director at 608-262-0252.


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