Part IV - Charge-out rates

Section D: Indirect cost rate

Chapter D.2 Calculating rates

1. Indirect cost totals for Research are divided by FTEs to produce an indirect cost rate for Research.
2. FTEs – of academic staff, research staff, and PGRs – were defined in Chapter C.1. This will not be the same FTE total that is used in the calculation of the estates charges as:
   1. PGR numbers are weighted at 0.2 (weightings in the estates charges are different from this);
   2. some FTEs that are included in the indirect cost rate may not be in the estates rate, in particular where staff are working wholly off-campus;
   3. in the estates calculations, FTEs are shown as a total for laboratory departments, and a total for non-laboratory departments, as two different estates charges are calculated. For indirect costs, only one rate is calculated, therefore there is no distinction between laboratory and non-laboratory departments.
3. Technical and clerical staff FTEs should not be included in the denominator.
4. Only one generic institutional rate per academic/researcher need be calculated but institutions can introduce additional rates if they wish.   This rate, when applied to PGR students, should be multiplied by 0.2 (the same weighting used on PGR student numbers in the original calculation).
5. The £/FTE should be converted from/to £ per day and £ per hour, on the basis of 1650 standard working hours in a year (e.g. 220 standard working days; 7.5 hours in a day).