Interest on debts related to buildings, equipment and capital improvements is based on information provided by the Corporate Accounting Office. Amortization expenses for buildings, improvements in the capital of buildings and buildings and equipment are calculated on the basis of the cost of acquiring the assets concerned and their functional use. However, there are times when a new collective agreement negotiated by the federal government is concluded between the submission of a proposal and the award of the award. If indirect rates increase in the new agreement, additional funds should be requested by the sponsor to cover the increases, as permitted by the sponsor`s policy. As a general rule, unassigned or unused direct cost funds are used to cover indirect cost deficits at the end of the budget period, to the extent that premium conditions permit. Other special rates can also be negotiated on campuses, for example. B for the California National Primate Research Center, the Space Science Lab and intergovernmental human resource allocation agreements. Calculating indirect costs generally involves identifying a « base » or the direct costs on which an indirect rate can be applied. Examples of two frequently used bases are Total Direct Cost and Modified Total Direct Cost. The types of costs excluded from the direct cost of a sponsored project for the calculation of the MTDC are as follows. The university seeks full recovery by budgeting all reasonable direct and indirect costs. As noted above, federally negotiated rates (see 8-210) and UC rates (see 8-220) are indirect cost rates that roughly correspond to the full coverage of indirect costs.
Public procurement and tax authorities are responsible for the use of the appropriate indirect cost rate in sponsored projects at the time of the offer and when awarding the auction. Unless an indirect waiver has been approved or the Verified Sponsor Policy (VSP) (for more information on VSP 8-530.4) has been applied, the corresponding indirect cost rate for a premium is the federally negotiated rate or a UC rate. The campus extramural funds office should not create an account for a premium below the current total indirect cost rate (see 8-500), without exception allowed.