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Part IV - Charge-out rates

Section D: Indirect cost rate

Chapter D.5 Justification

  1. If an institution’s indirect cost rate falls above the upper quartile of the sector rates, then they should be prepared to justify this higher rate, or use a lower non-compliant indirect cost rate (specified by the Office of Science & Technology/ Research Councils) if lower than their rate.
  2. This decision should apply for one year, across all projects in that institution. Part of the reason for a higher rate might, for example, include definitional issues where fewer costs are being claimed as direct; part might relate to efficiency or a wide range of historical or other reasons.
  3. An acceptable method for justifying a higher rate is described under external quality assurance.
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