All budgets developed for projects receiving external funds musts include indirect costs, at the allowed rate or at the university rate. The new indirect cost rate is to be used for projects supported by agencies which allow indirect costs and do not set their own rates. This rate is to be used when requesting funds from any source outside the university or from state of South Dakota agencies. When developing budgets for set fee or lump sum contracts, this amount must be included in the total requested. Project directors who do not include indirect costs in proposal budgets when they are allowed will be asked to change the budget.
Indirect costs are real costs for the support of a project.
BHSU needs an avenue to recover those costs of supporting a project, such as electricity, office maintenance, administrative support, etc.