Research Policy Analysis and Coordination
The University's general financial policy with regard to extramurally sponsored projects is set forth in University Regulation No. 4, "Special Services to Individuals and Organizations," set forth in Academic Personnel Manual APM-020.This Regulation states that:
For all tests and investigations made for agencies outside the University, a charge shall be made sufficient to cover all expenses, both direct and indirect.
This policy objective should be applied in a manner which best accommodates the policies and objectives of the extramural sponsor and The Regents. Exceptions to the policy must receive appropriate reviews and approvals. For example, contributions of the Principal Investigator's time as well as any other form of cost sharing and contributions must have required campus approvals. (See Chapter 5, "Cost Sharing.") Waivers or reduction of the applicable indirect cost rate must be approved by the Office of the President. (See Chapter 8, "Indirect Costs.")
This Chapter provides a general background to the University's financial practices with regard to extramurally funded projects. It traces the authority to expend funds from extramural sponsors and describes the financial responsibilities and considerations involved in the management of extramural agreements. Chapter 7, "Budgets and Expenditures," provides more detailed information and definitions of allowable direct costs. Chapter 8, "Indirect Cost," provides further background on the University's indirect cost policy and practices.