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Universities warn committee: federal caps on indirect costs could cut research support and campus infrastructure
Summary
Vice presidents for research from UND and NDSU explained how federal research grants pay salaries, students, supplies and indirect (F&A) costs; UND's negotiated F&A rate is 41% (effective recovery ≈23%) and a proposed federal cap at 15% could cost UND an estimated $12–15 million per year if instituted
BISMARCK — The committee heard two briefings on research funding and how federal grants — and the recovery of indirect costs — support research infrastructure, compliance, faculty start-up and other costs that are not billable as direct project expenses. How federal awards work: Scott Snyder, vice president for research at the University of North Dakota, outlined a hypothetical federal grant budget that showed direct costs (faculty and staff salary portions, graduate and undergraduate student support, supplies, travel, equipment and subawards). He explained that an institution’s federally negotiated facilities & administration (F&A) or indirect cost rate (UND’s negotiated rate is 41%, NDSU’s is 45%) applies to…
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