Kansas State University (KSU) is a public research institution located in Manhattan, Kansas. The university has a strong research component and receives funding from various sources, including the federal government. As part of this funding, KSU has an indirect cost rate agreement (ICRA) with the government to help cover the costs associated with conducting research.
An indirect cost rate agreement is a negotiated agreement between a grantee (in this case, KSU) and the federal government that establishes the rate at which indirect costs will be reimbursed for research projects. Indirect costs are expenses that cannot be directly attributed to a specific project but are necessary for the project to be completed, such as facility costs, administrative costs, and utilities.
KSU’s current ICRA was negotiated with the federal government in 2019 and is valid until June 30, 2023. The agreement establishes an indirect cost rate of 54.5% for research projects sponsored by the federal government. This means that for every dollar the federal government allocates for direct research costs, an additional 54.5 cents will be provided to cover indirect costs associated with the project.
The ICRA is an important item for KSU’s research enterprise. Without it, the university would have to cover these indirect costs using its own funds, which could limit the number of research projects that could be conducted. The agreement also helps KSU maintain its commitment to transparency and accountability in the use of federal funds.
KSU’s ICRA is reviewed and negotiated every few years to ensure that the indirect cost rate accurately reflects the costs associated with conducting research. This process involves a detailed analysis of the university’s financial and administrative systems to determine the appropriate rate for indirect costs. Once negotiated, the ICRA serves as a framework for budgeting and managing the indirect costs associated with federal research projects.
In conclusion, Kansas State University’s indirect cost rate agreement is an essential component of the university’s research enterprise. The agreement ensures that the costs associated with conducting research are adequately covered and provides transparency and accountability in the use of federal funds. As KSU continues to pursue groundbreaking research in various fields, the ICRA will remain a critical element in supporting its efforts.
