Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 1073]

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1070

BOARD OF TRUSTEES

[December 17

the staff member and submitted, with accompanying budget, for University approval in accordance, with procedures stated above. The proposal shall not be required under such conditions. Contracts prepared by sponsoring agencies shall be referred to the Business Office for examination as to financial terms and conformance with University policy. After a proposed contract has been negotiated and received by the Business Office, it shall be approved by the department which is to conduct the investigation and the Legal Counsel, and signed by the Vice-President and Comptroller and attested to by the Secretary of the Board of Trustees, who may authorize responsible members of their staffs to execute contracts on their behalf. (f) Gifts, grants, and contracts for research may provide for all or a part of the costs of a research project. When the funds from the sponsor are to cover all or substantially all of the costs, the following items should be considered in the preparation of the budget: salaries and wages, employer's contribution to the University Retirement System, allowance for Workmen's Compensation and Occupational Disease liability, expendable supplies, equipment, travel expenses, other direct costs, and an allowance for indirect costs to the University. The amount budgeted for indirect costs in any proposed project shall be reviewed and approved by a committee composed of the Chairman of the Research Board or his delegate, who in Chicago shall be the Vice-President in Charge, a representative of the appropriate research agency or department carrying on the project, and a representative of the Business Office. In determining the amount to be budgeted for indirect costs, the committee shall give consideration to the respective benefits which shall be received from the investigation by the sponsor, by the University, and the public. When the budget provides for full recovery of all indirect costs, or in those cases where some other rate of reimbursement is established by policy of the sponsoring agency and can not be altered by the University, the following distribution of the funds thus received shall be made: (1) Forty per cent to a reserve which will periodically lapse to general University income. Special administrative, physical plant, or other costs which result from such research activities may be charged directly to this reserve. (2) Thirty per cent to a fund to be allocated by the University Research Board, for general University research purposes. (3) Thirty per cent to the University department conducting the investigation, for research or related activities. In those cases where less than total reimbursement of indirect costs is received, except where this is due to the established policy of the sponsoring agency, all sums received for this purpose shall first be applied to the genera! University allocation under (1) above. After the full 40 per cent of all indirect costs has been realized, any balance shall then be applied to (2) above, and after such 30 per cent has been realized, any remaining balance shall be applied to (3) above. On projects where limited or excessive demands are made upon University facilities, the committee is authorized to revise the percentage allocation provided above. ( g ) The University is often requested to accept grants and contracts