As a result, it has become increasingly important to maximize the University's recovery of those infrastructure costs. The following article provides a context for the upcoming rate calculation and negotiation activities. In this manner, the federal government and other sponsors reimburse the University for the indirect costs that support organized research. Organized research is defined as discrete, defined projects for which the University separately budgets and accounts.
Organized research is distinguished from departmental research.
Departmental research is less-defined research activity for which the University does not separately budget and account and for which the University receives no reimbursement of costs. There are two forms of indirect costs- facilities indirect costs related to the University's physical infrastructure and administrative indirect costs associated with central services that support organized research and the University's other major functions. The ratio is calculated in four basic steps. Facilities cost allocations are based predominantly on the amount of reported organized research space. For example, an annual space utilization survey indicating that 50 percent of the Technology Institute is used for organized research results in a 50 percent allocation of the Technology Institute's building depreciation costs to organized research.