Overhead Allocation Policies
Overhead Allocations to Support Research and Research Gift Fees
On March 14, 2005 Chancellor Birgeneau announced a new policy for the annual allocation of overhead to units based on a report by the Research Support Advisory Committee. Beginning in FY 2004-2005, the allocation of overhead to units administering sponsored research will be based on a three-year rolling average of incremental changes in direct research expenditures and sub-awards (but excluding research gifts) adjusted by a factor addressing the unit's level of overhead recovery and ability to direct charge administrative costs. These annual allocations will be made in the form of temporary recurring funds to units, and will accrue with time for units with increasing levels of research expenditures.
An additional 2% of the average incremental direct expenditures will be allocated to central units that support research administration, and 1% of the average annual incremental direct expenditures will be invested in future research via the Berkeley Futures Grants Program and Cost Sharing Funds Program.
This allocation formula replaces the previous annual allocation program which was based purely on a unit's overhead generation.
This policy also implements a change to the administrative fees for research gifts. For all research gifts with a check date of April 1, 2005 or after, an administrative fee of 10.5% (7.5% to cover the costs of the administering unit, 2% to cover the costs of central campus units involved in research administration, and 1% towards investment in future research via the Berkeley Futures Grants and Cost Sharing Programs) will be assessed. This fee replaces the previous 2% fee assessed to research gifts.
For additional information, please see: