Part IV - Charge-out rates

Section F: Default rates

1. Some institutions do not have robust methods for calculating either their indirect cost rate or their estates charges, or both. This may be identified through the 2004/05 external quality process, or other part of the quality assurance processes.
2. Until they take action to introduce robust methods for calculating the indirect cost rate, they should apply the non-compliant default indirect cost rate (or their own rate, whichever is lower).
3. Until they take action to introduce robust methods for calculating the estates charges, they should apply the non-compliant default estates charge (which is set at zero).
4. Institutions who are eligible for dispensation and who wish to take up this dispensation, may apply the dispensation default indirect cost rate and the dispensation default estates charge.
5. The default rates are announced by the OST/Research Councils. These may be recalculated, or indexed year on year. Institutions may have to declare that they are applying the default rate/s.
6. An institution using a default rate at the start of a year, but that then introduces fully robust systems in that year, can start to apply their own rates from 1 February of the next year.
   

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