Indirect Costs of Research

Policy Number
3401
Responsibility
VP Academic
Approved
Board of Governors
Previous Name
Applied Research Overhead
Effective Date
April 05, 2012
Amended
September 23, 2024
Context/Purpose

The purpose of this policy is to state the Justice Institute of British Columbia’s (“JIBC” or the “Institute”) position with respect to the recovery of Indirect Costs for Research Agreements. 

Policy Statement

The costs of conducting research at JIBC include not only the Direct Costs of the project but also Indirect Costs. These Indirect Costs are those that cannot be readily and exclusively identified but are costs that are incurred by JIBC to provide the resources and infrastructure required to allow a research project to proceed. Indirect Costs may include, without limitation: research administration (drafting of Research Agreements, negotiation of contracts, review of research proposals, on-going contract administration, maintenance of information on funding sources, etc.), related committees (such as research ethics boards), accounting, human resources and payroll (invoicing, research account maintenance, preparation of financial reports, purchasing), support for libraries, access to computer services, and the provision and maintenance of research facilities and office space.

Where permissible and appropriate, all research contracts, contribution agreements, grants, service contracts, Sub-awards, donations, and research-related activities must include a component for Indirect Costs. Indirect Costs are calculated and distributed at the rate specified in the Indirect Costs of Research Rates of Recovery document. 

Scope

This policy applies to all Research funded by Research Agreements except:

  • Tri-Agency grants, where JIBC already receives compensation for the Indirect Costs of Research from the federal government through the Research Support Fund; and
  • grants received from government and not-for-profit organizations that clearly state a different Indirect Costs recovery rate applies to all applicants.
Definitions

Applicant – refers to both administrators and researchers who submit applications to external agencies for research funding.

Direct Costs – costs of a project that can easily and accurately be identified as such. For the purpose of this policy, examples include but are not limited to salaries, wages and benefits of research personnel, materials and supplies, travel, equipment, and rental of space.

Indirect Costs – costs of a project that cannot be directly attributed to it usually because they are incurred for objectives common to multiple projects, multiple researchers, or multiple functions of the Institute. Examples include but are not limited to building use and depreciation, equipment depreciation, physical plant and maintenance (including utilities, hazardous waste disposal, security), insurance, financial administration (including purchasing and accounting) and libraries.

Research – investigation or experimentation aimed at the discovery or interpretation of knowledge, the systematic collection or revision of knowledge in light of new facts or theories, the development and application of methodologies to increase knowledge and the practical application of knowledge to specific problems or circumstances.

Research Agreement – any agreement entered into by JIBC and a sponsor to perform research or research-related activities under specified negotiated conditions in exchange for payment of Direct and Indirect Costs. A Research Agreement can be expressed in a variety of forms, including without limitation an exchange of letters between the parties, purchase orders, form contracts, and contracts requiring execution under seal.

Research Grant – an agreement under which a public or private organization provides funding to pay for part of the costs of a research project. Normally a grant does not require the researcher to deliver to the sponsor a pre-determined set of research outcomes.

Research-Related Activities – activities closely related to research. Examples include but are not limited to testing and evaluation; the collection and manipulation of data; writing, editing or translating; and the organization of meetings for the communication and discussion of research results.

Research Support Fund – assists Canadian postsecondary institutions and their affiliated research hospitals and institutes with the expenses associated with managing the research funded by the three federal research granting agencies. Research Support Fund allocation to JIBC is based on the amount of funding received from the three federal research councils (Tri-Agency).

Sub-award – the transfer of funds from an Applicant at another institution to a JIBC researcher and/or JIBC for collaboration on a funded project. Can also be referred to as a sub-grant or an inter-institutional agreement.

Tri-Agency – a term used to collectively refer to the three federally funded Canadian research councils: Canadian Institutes of Health Research (CIHR), Natural Sciences and Engineering Research Council (NSERC), and Social Sciences and Humanities Research Council (SSHRC). All three have the same policies, procedures, and guidelines. 

Procedures

Procedures for the recovery of Indirect Costs under this Policy are set out in Procedure 3401-001 Recovery of Indirect Costs of Research.

Employee Awareness

Employees are required to make themselves aware of all JIBC policies and procedures. Lack of awareness of this or any other JIBC policy does not excuse an employee from responsibility for their actions. 

Related Policies and Procedures

Documents and Forms