Repository: UIHistories Project: Board of Trustees Minutes - 1948 [PAGE 514]

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1947]

UNIVERSITY OF ILLINOIS

513

I I I . Those which are supplemental to University research programs and provide funds for desirable expenditures which the University otherwise would not be able to make or, in some instances, would relieve the University of expenditures that it might otherwise make and thus release University funds for other or additional research expenditures. Notwithstanding the classification of any particular contract, the accrual of indirect costs will be recognized and the University officers involved should suggest to the grantor that all or a portion of such costs be met from contract funds. Projects in Group I should be charged with an amount that will compensate the University as fully as possible for all indirect costs to which it has been put in carrying out the project. The rate and amount of indirect costs, if any, to be paid to the University on projects in Groups II and I I I will be determined by the administrative officer of the research agency involved after consultation with the Business Office. Such consultation will not be required in the case of research investigations involving total payments of less than $5,000. Subject to the principles stated above, any University staff member who has been authorized by the proper administrative officer to negotiate with a prospective sponsor of an investigation shall prepare a budget for all estimated direct costs and to this amount shall be added the provision, if any, for indirect costs. Indirect costs include general, college, and departmental administrative costs, physical plant operating costs, and use of departmental, college, and general University facilities. The following distribution of funds collected on account of indirect costs is to be made: Thirty per cent will be made available to the University department conducting the investigation, for use as approved by the administrative officer of the college. Costs of research investigations, not charged thereto as direct costs, and property purchased from contract funds for use on investigations, title to which remains with the donor, which is acquired by the University at the termination of the contract by purchase, will be charged to this allocation. Thirty per cent will be transferred to a general research fund to be allocated by the University Research Board for research purposes to any individual or department of the University. Balances remaining in the above allocations at the close of each fiscal year will be subject to reappropriation by the Board of Trustees. Forty per cent will periodically lapse to general University income. Any administrative or physical plant costs which result from such research activities may be charged directly to these funds. Certain contracts are negotiated, particularly with Federal agencies, in which a provisional rate of reimbursement for indirect costs is stated, to be subject to later review. Any amounts allocated in accordance with the above will be subject to such review and renegotiation of rates, if applicable. Employer contributions to the University Retirement System of Illinois for retirement annuities and disability and death benefits, covering the salaries of participants in the System paid from contract funds, are to be considered as direct costs of all research contracts with outside sponsors. To provide for possible losses under the Workmen's Compensation Act, V/2% of all payments for personal services from contract funds will be assessed against such funds as direct costs. Such charge will not be made if the research contract provides indemnity to the University for any losses incurred under such Act, or if the interests of the University do not appear to require it. Such rate may be reduced if justified by experience, or if in the individual projects the probability of loss is small. The sums thus accumulated will be carried in a reserve account from which such claims will be paid. These principles will be effective July 1, 1047.

This matter was referred to the President of the University and the Finance Committee for consideration and report.

PURCHASE OF PROPERTY AT 8 0 5 WEST PENNSYLVANIA AVENUE (40) The 65th General Assembly of Illinois has failed to make any appropriation to the University of Illinois for the biennium of 1947-1949 for the construction of a Veterinary Science Building. This was the top priority item on the Urbana