The West Virginia University (WVU) Office of Sponsored Programs (OSP) has recently announced an important update regarding their rate agreement. If you are a researcher or an organization that collaborates with WVU on sponsored programs, it is essential to know about these changes to ensure compliance with the new guidelines.

So, what exactly is the WVU OSP rate agreement?

In simple terms, the rate agreement outlines the indirect cost rates that WVU charges on federally-funded grants and contracts. Indirect costs are the expenses that are not directly related to the project but are necessary for the research to take place. Examples of indirect costs include rent, utilities, and administrative expenses.

WVU OSP negotiates the indirect cost rates with the federal government`s Office of Management and Budget (OMB) every few years. The current rate agreement covers the period from July 1, 2021, to June 30, 2025.

What are the changes in the current rate agreement?

The OSP has revised the indirect cost rate structure for all sponsored programs, which includes research, education, and public service activities. The major changes in the rate agreement are:

1. Indirect cost rates for on-campus projects have been increased from 54.5% to 55%

2. Indirect cost rates for off-campus projects have been increased from 26% to 26.5%

3. The MTDC (Modified Total Direct Costs) base has been replaced with the Total Direct Costs (TDC) base for all sponsored programs.

4. The definition of TDC has been revised to exclude capital expenditures, patient care costs, rental costs of off-site facilities, and tuition remission costs.

Why are these changes important?

As a researcher or the recipient of a federal grant or contract, it is crucial to understand the indirect cost rates that your institution is charging you. These rates can have a significant impact on the total budget of your project and could affect the success of your research.

Knowing the new indirect cost rates will help you plan your budget accurately and ensure that you comply with the guidelines set by WVU OSP. It is also essential to note that failure to comply with the rate agreement could result in penalties or loss of funding.

In conclusion, the WVU OSP rate agreement is an essential component of federally-funded projects at the university. The recent revisions to the indirect cost rate structure are significant, and it is crucial for researchers and organizations to be aware of them. By understanding the changes and complying with the guidelines, you can ensure the success of your sponsored program at WVU.