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401.1 Facilities and Administration Costs

Date Adopted: 4/22/2003
Date Last Revised: 02/08/2024
Date Last Reviewed: 01/16/2024
References: BOR Policy 404
Issuing Office: Administration and Finance
Approved By: Vice Chancellor for Administration and Finance

  1. Policy

    The University of Montana Western establishes a policy for the use of facilities and administration costs charged on specific grants and contracts to cover administrative overhead, provide seed money to develop new grant proposals, and support faculty research.

  2. Purpose

    Facilities and administration costs, sometimes referred to as “overhead” costs, can be charged to specific grants and contracts. Facilities and administration costs are related to the cost of facility and administrative use of having a research project on campus. The costs are not reflected as direct costs in the project budget. A facilities and administration rate is charged to the project budget to cover these institutional costs.

  3. Procedures

    Most of the funds generated by facilities and administration costs are needed for administrative overhead in grant management and cost match and for institutional priorities related to administrative overhead.

    At this time, the University has not opted in to a flat rate agreement with the Federal Government.  Montana Western submits a Modified Total Direct Costs report on a predetermined schedule to the Federal Government.  The Federal Government issues a rate agreement for use on grants, contracts and other agreements with the Federal Government.  Some Federal Agencies have established maximum indirect costs rate to which the University adheres.   
  4. Authority

    BOR Policy 404

  5. Responsibility

    Dean of Strategic Initiatives, Director of Business Services, Vice Chancellor for Administration and Finance