university of illinois - UIHistories Project

1070 BOARD OF TRUSTEES [December 17
the staff member and submitted, with accompanying budget, for University
approval in accordance, with procedures stated above. The proposal shall not
be required under such conditions.
Contracts prepared by sponsoring agencies shall be referred to the Business
Office for examination as to financial terms and conformance with University
policy.
After a proposed contract has been negotiated and received by the Business
Office, it shall be approved by the department which is to conduct the
investigation and the Legal Counsel, and signed by the Vice-President and
Comptroller and attested to by the Secretary of the Board of Trustees, who
may authorize responsible members of their staffs to execute contracts on
their behalf.
(f) Gifts, grants, and contracts for research may provide for all or a
part of the costs of a research project. When the funds from the sponsor are
to cover all or substantially all of the costs, the following items should be
considered in the preparation of the budget: salaries and wages, employer's
contribution to the University Retirement System, allowance for Workmen's
Compensation and Occupational Disease liability, expendable supplies, equipment,
travel expenses, other direct costs, and an allowance for indirect costs
to the University. The amount budgeted for indirect costs in any proposed
project shall be reviewed and approved by a committee composed of the
Chairman of the Research Board or his delegate, who in Chicago shall be the
Vice-President in Charge, a representative of the appropriate research agency
or department carrying on the project, and a representative of the Business
Office. In determining the amount to be budgeted for indirect costs, the committee
shall give consideration to the respective benefits which shall be
received from the investigation by the sponsor, by the University, and the
public. When the budget provides for full recovery of all indirect costs, or
in those cases where some other rate of reimbursement is established by
policy of the sponsoring agency and can not be altered by the University, the
following distribution of the funds thus received shall be made:
(1) Forty per cent to a reserve which will periodically lapse to general
University income. Special administrative, physical plant, or other costs
which result from such research activities may be charged directly to this
reserve.
(2) Thirty per cent to a fund to be allocated by the University Research
Board, for general University research purposes.
(3) Thirty per cent to the University department conducting the investigation,
for research or related activities.
In those cases where less than total reimbursement of indirect costs is
received, except where this is due to the established policy of the sponsoring
agency, all sums received for this purpose shall first be applied to the genera!
University allocation under (1) above. After the full 40 per cent of all indirect
costs has been realized, any balance shall then be applied to (2) above,
and after such 30 per cent has been realized, any remaining balance shall be
applied to (3) above.
On projects where limited or excessive demands are made upon University
facilities, the committee is authorized to revise the percentage allocation
provided above.
(g) The University is often requested to accept grants and contracts