Final Approval Body: Senior Leadership Team
Senior Administrative Position with Responsibility for Procedure: Vice-Principal Research
Date Initially Approved: 5/1/13
Date of Last Revision: 4/11/25
Purpose
To provide the research community with instruction on Indirect Costs recovery in Sponsored Research proposal/agreement budgets.
Procedure
Step 1 - Research or service determination.
Confirm whether the proposed activity is a research activity according to the definition of Research in the Policy. If the activity is Research, proceed to Step 2.
Responsible Officer/Unit - Principal Investigator in consultation with Research Services and Research Accounting, if required.
Step 2 - Read relevant University policy(ies).
Read the Indirect Costs of Sponsored Research Policy, and resources referenced therein, in its entirety to understand the University's requirements for the recovery of sponsored research project Direct and approved Indirect Costs as posted with each research grant funding opportunity (Searchable Funding Database).
Step 3 - Obtain Sponsor policies and/or guidelines
Review Sponsor guidelines, policies and definitions on Indirect Costs to determine if the Sponsor prescribes an Indirect Costs recovery rate that would supplant the approved rates defined in the Indirect Costs of Sponsored Research Policy,
- If Yes, continue to Step 4
- If No, move to Step 6
Responsible Officer/Unit - Principal Investigator, in consultation with Research Services and/or Research Legal Services
Step 4 - Determine feasibility and impact of potential Indirect Costs recovery variance, if applicable
Consult with Associate/Vice Dean(s) Research of the units expected to administer the research to ensure all expected Indirect Costs are considered and expenses can be recovered.
Responsible Officer/Unit - Principal Investigator, in consultation with Associate/Vice-Dean Research and Research Services
Step 5 - Prepare Indirect Costs Variance Request form
Complete and submit the Indirect Costs Variance Request form to Research Services or Research Legal Services prior to initiating any research partnership agreement discussions with the Sponsor and/or before submitting a funding application to the Sponsor for approval by the Vice-Principal Research (or designate).
Ensure Indirect Costs Variance approval is obtained prior to finalizing the research agreement or funding application. Once completed, the signed form will be returned to the Principal Investigator and must be shared with Research Legal Services (in Step 7), if applicable, prior to entering negotiations with external partners.
Responsible Officer/Unit - Principal Investigator in consultation with Associate/Vice-Dean Research and Research Services and/or Research Legal Services
Step 6 - Determine Direct and Indirect Costs to be included in the research project budget
Use the following guidelines to prepare the budget (indicate "draft budget" if applicable):
- If indirect costs recovery is permitted, use the approved Indirect Costs recovery rate.
- Applicable Indirect Costs Recovery Rate (%) x Total (eligible*) Direct Costs = Indirect Costs Amount
- Total Direct Costs Budget + Indirect Costs Amount = Total Budget
*Be sure to follow Sponsor guidelines on whether all or only some (e.g., salary) Direct Costs are eligible for use in determining Indirect Costs amount.
- If the Sponsor has a cap on the Total Budget (Direct + Indirect Costs)
- Maximum Budget / (Applicable Indirect Rate (%) + 1) = Maximum Direct Costs
- Maximum Budget - Maximum Direct Cost = Maximum Indirect Costs
Responsible Officer/Unit - Principal Investigator, in consultation with Associate/Vice-Dean Research, Affiliated Hospital, and Research Services and/or Research Legal Services.
Step 7 - Obtain necessary approvals
Submit all relevant documents, including Research Proposal, Budget and, if applicable, Agreement via electronic approval workflow (TRAQ DSS) for review and approval to proceed.
The signing authority for Research Agreements without conditions (i.e., grants) is a designate of the Vice-Principal (Research) and is typically the Director, Grants and Research Operations.
Research Agreements with conditions (i.e., research contracts) must be approved and signed in accordance with the Approval and Execution of Contracts and Invoices Policy. The signatory for the University is a designate of the Vice-Principal Research and is typically the Assistant Vice-Principal Partnerships and Innovation (private sector Sponsors) or Director, Grants and Research Operations (e.g., public or not-for-profit research sponsors, such as research foundations and government agencies).
Research Agreements with conditions conducted at an Affiliated Hospital(s) must be signed by the sponsor, the Vice-Principal Research, or designate, and the applicable Affiliated Hospital signing authority.
Responsible Officer/Unit - Principal Investigator
Step 8 - Manage submission of funding application to Sponsor(s) or agreement execution
In cases where the Principal Investigator may submit documents to the Sponsor directly, provide a notification of completion to Research Services, the Associate/Vice-Dean Research, and where appropriate Affiliated Hospitals.
Responsible Officer/Unit – Principal Investigator, Research Services, Research Legal Services
Related Policies, Procedures and Guidelines:
- Indirect Costs of Sponsored Research Policy
- Procedure on Distribution of Funds to Support the Indirect Costs of Sponsored Research
- ³ÉÈË´óƬ Approval and Execution of Contracts and Invoices Policy
- Research Administration Policy
Responsible Officer: Vice-Principal Research
Contact: Director, Grants and Research Operations
Date for Next Review (five years from initial approval): 4/11/30