Policy Number: 6-12
Policy Name: Policies and Procedures for Space Needed for Externally Sponsored Agreements
Date: October 20, 1992
To provide a financial mechanism for space needed for sponsored activity.
When additional space is needed to support an externally sponsored activity and when funds to rent such space can be negotiated with sponsors, it is financially preferable to charge such rents directly to the sponsored agreements.
A suitable alternative to item II.A., above, if it can be negotiated with the sponsor, is to apply a rate higher than the rate normally charged by the University (e.g., negotiate an on-campus rate when a lower off-campus rate would normally be applied by the University).
While total indirect cost recoveries continue to increase each year, a few exceptions may be considered whereby space costs needed for externally sponsored agreements may be related ($1 to $1) to the indirect costs received by that agreement.
In the event total indirect costs level off or decrease in the future, item II.C. will be reconsidered.
The length of any lease will correspond to the term of the sponsored agreement and, if extension in the agreement is indefinite, the language of the lease must allow the University to terminate the lease if the activity is terminated by the Sponsor.
When space is charged directly to an agreement under II.A., above the resulting costs are to be excluded from the calculation of indirect cost rates.
The University's Basic Budget for Rental Expense and Indirect Cost Revenues will be increased by the amount of the annual space costs by the Budget Office under II.B. and C., above.
The codes for these rentals are to be unique so they can readily be identified.
In the distribution of indirect costs back to the department and college under item II.B., above, the space costs are to be charged to the excess indirect costs received as a result of negotiating the higher rate.
In the distribution of indirect costs back to the department and college under item II.C., above, space costs are to be shared proportionately by the University, college and department.