R537-1. Purpose
2.2. Policy and Procedures R535, Accounting and Reporting of Reimbursed Overhead
R537-3. Policy
3.1. Ten percent overhead rate - The institutions of higher education shall charge, as partial reimbursement of costs incurred, a ten percent overhead rate on all contracts with state and local government agencies funded from non-federal sources, unless an overhead charge is expressly prohibited in the RFP issued by the state or local government agency.
3.2. Flow through federal funds - Funds received by state and local government agencies for federal grants on work contracted to the universities and colleges flow through to those institutions and are charged overhead at the institution's usual overhead rate for federal contracts. It is recognized that the state or local government agency may decide to retain a portion of the federal funds as reimbursement for administrative functions performed by the agency.
3.3. Collections retained in special account - The ten percent overhead on all contracts with state and local government agencies funded from non-federal sources shall be retained by the institution and be accounted for as part of the institution's report on reimbursed overhead.
(Adopted December 20, 1977, amended March 28, 1978 and September 12, 2003.)