- Non-Federal IDC Budget Tool Overview
- Types of Non-Federal IDC Budget Tools
- Types of Costs in Lieu of Overhead
- Non-Federal IDC Budget Tool Business Process
Non-Federal IDC Budget Tool Overview
The One-Page Non-Federal IDC Budget Tool must be used for all non-federally sponsored proposals, regardless of the proposed amount. The tool prompts users to budget costs in lieu of overhead directly on projects and then tracks the information in order to be able to complete the costs-in-lieu journals. Note: For non-federal fellowships and proposals receiving the full federal overhead rate, the tool must be submitted but only basic information is required for data collection purposes.
The business process below outlines the steps for completing and submitting the IDC Budget Tool. Note: Within the actual IDC budget tool excel file, you will find a copy of this BP, a job aid, screenshots for preparing a costs-in-lieu journal. and budget justification instructions.
Non-Federal IDC Budget Tool
- One-Page Version (required)
Types of Costs in Lieu of Overhead
Business Process: Non-Federal IDC Budget Tool, Recovery of In-Lieu
- Originally Issued: September 1, 2015
- Last Revised: February 5, 2021
- Responsible Office: Harvard Chan School SPA Office
- PDF version of the Award Receipt Business Process
Reason for the Business Process
In accordance with the Policy for the Application of Indirect Costs to Sponsored Awards, the School is committed to the recovery of facilities and administrative costs incurred to support the performance of non-federally sponsored activities. The sponsor’s maximum published indirect cost rate must be applied and to the extent that the sponsor’s IDC rate is less than the federal rate, costs normally funded as indirect costs (space, IT, administrative salaries), should be included as directs costs whenever possible.
A business process for the recovery of line items budgeted directly on projects for costs in lieu of overhead is necessary in order to ensure a consistent practice that allows for the appropriate recovery of overhead for the School.
Business Process Summary
The one-page IDC budget tool must be used for all non-federally sponsored proposals, regardless of dollar amount. It prompts users to budget costs in lieu of overhead directly on projects and then tracks the information in order to be able to complete the costs-in-lieu journals. In the tool, you are asked to include administrative salaries, office space, lab space, and IT costs as direct costs in the budget. This helps to minimize the amount of unrecovered indirect expenses incurred for the project.
- Exceptions: The tool still needs to be completed for non-federally sponsored fellowships and for proposals that receive the full federal overhead rate, however, only basic information is required, at the top of the tool, for data collection purposes.
- One-page/short: Only the 1-page tool is needed for all proposals
- Tool: The tool is located on the OFS internal website, under the Systems -> IDC Budget Tool. There is a job aid located on a tab within the tool.
- Late Proposals: The late proposal notification policy also applies to the tool.
Business Process Steps
Roles and Responsibilities for Recovery of In-Lieu of line items:
|
Step |
Role |
Task/Activity |
|
1 |
Dept. |
Uses one-page IDC budget tool and budgets line items in lieu of overhead including lab space, office space and IT. Departments are also encouraged to direct charge administrative salaries when appropriate. Note that these costs still need to be entered into the tool even if the sponsor does not allow them. They should be included and then you change it to “zero billed to grant”. |
|
2 |
Dept. |
Presses “Submit to SRA” button for SRA review. A pop up will appear and then you type “yes” to proceed. An automated email is sent to: ADF, SRA, CRAO, CFO, Senior Director of Finance, Associate Director of Research Operations |
|
3 |
SRA |
Reviews tool to ensure completeness and presses “SRA review complete” for addition to database. An automated email is sent to: AD of Research Operations |
|
4 |
AD, Research Operations |
Receives automatic e-mail to update database. Saves tool in shared folder, extracts data and uploads to database. |
|
5 |
Dept. |
When action memo is received indicating that a non-federal project has been awarded, enters budget into Wasabi including costs in lieu of object codes (8402 and 8404). Completes Job Data Change in Wasabi to charge any administrative salaries budgeted in lieu to non-federal award. |
|
6 |
Dept. |
Completes recovery journal for space and IT on a quarterly basis. An example is included in a tab in the tool. The account to credit is 275.23210.000001.556301.0000.00000. The post award metrics will track these awards as a helpful reminder for the department. |
Recommendations on what should be budgeted directly:
|
Item |
Recommendation |
|
|
Departments should prioritize the inclusion of effort for a grant manager and then other related staff who will support the project, such as Accounts Payable support, when appropriate. |
|
(8402) |
Budget $78 X approximate square feet of office X % of effort on project (annually) with a 3% escalation in out years.
Justification: Office space is charged annually for each person budgeted on the project based on their percentage effort on the project and their office size. The rate charged per square foot is $78 which is the average cost for office space.
Small is < 500 sq. ft. Medium is 500-1000 sq. ft. Large is > 1000 sq. ft. |
|
(8402) |
Budget $149 (for wet labs) or $78 (for dry labs) X approximate square feet of lab X % effort on project (annually) with a 3% escalation in out years.
Justification: Lab space is charged annually based on the size of the lab and the expected percentage of usage for the project. The rate is $78 per square foot for a dry lab and $149 for a wet lab which represents the average cost of lab space.
Small is < 500 sq. ft. Medium is 500-1000 sq. ft. Large is > 1000 sq. ft. |
|
(8404) |
Budget $1,107 annually as of FY21 per FTE with a 3% escalation in out years.
Justification: The Harvard T. H. Chan School of Public Health Information Technology Department provides server support, desktop software, networking and helpdesk support for all researchers and staff. The cost is based on an annual FTE rate of $1,107/year. |
Revision History
- 7/24/23: Optional long version of the form has been discontinued
- 2/5/21: Moved information from the previous Business Process to new format. Updated Information Technology amount to reflect FY21 rates
- 3/22/19: One-page version mandatory for all non-federal proposals, regardless of dollar amount, and the long version is optional. Clarified that, in order to capture data points, a tool must filled out for all non-federally sponsored proposals, including those that obtain the full federal IDC rate and fellowships.
- 9/1/15: Business Process created