Overhead on Sponsored Research

The role and purpose of overhead on sponsored research are defined under University of À¶Ý®ÊÓƵ Policy 26:

  1. GENERAL
    It is intended that the University recover the cost (direct and indirect) of sponsored research activities. Whenever possible, provision for University overhead (the indirect cost) must be made when applying for funding for sponsored research activities. Contract and industrial grant sponsors must allow for overhead recovery; for other grant and research sponsors, an overhead factor must be used whenever possible. Overhead rates and methods of application are dependent on the sponsoring body and the type of sponsored activity. Details of the rate ranges and methods of application are available from the Office of Research.
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  2. PURPOSE
    Overhead is to provide compensation to the University for the use of space, heat, light, power, furniture, administrative services, library, central computing, etc. Overhead recovery received by the University will be credited to the University's operating budget and distributed on a slip-year basis.
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  3. ADMINISTRATION
    Responsibility for the administration and application of this policy rests with the Vice-President, Research and International.

Overhead Policy in the Faculty of Science

Eligible PIs can request that 20% of the overhead realized by the Faculty of Science be returned to them annually. Overhead distribution will be conducted on a double slip-year basis (e.g., overhead generated in the 2023/24 fiscal year will be returned to PIs in the 2025/26 fiscal year). Eligible PIs will receive an email notifying them of their eligibility in a given fiscal year. Any amount remaining (e.g. not requested in that fiscal year) can be requested in a future fiscal year.

PIs may also request a partial or complete reduction in overhead for the first $25,000 CAD of sponsor cash. As overhead is essential for maintaining space and staffing costs, the submission of a completed request form does not guarantee a reduction in overhead. Each request will be considered on a case-by-case basis by the Associate Dean of Research or their delegate.

How to apply for returned overhead

Step 1: Determine your eligibility

  • You have generated at least $25,000 CAD in total overhead during the fiscal year in question
  • You currently hold an unspent amount of returned overhead that is less than $100,000 CAD – only in exceptional cases may a PI request approval from the Associate Dean of Research or their delegate to exceed this limit

Step 2: Submit an application

  • A completed application form must be submitted

Step 3: Application review

  • Your application will be reviewed by the Associate Dean of Research or their delegate
  • Applicants will be notified of the results in writing
  • Successful applicants will receive a copy of their application bearing the Associate Dean of Research’s signature and a transfer of funds from the Financial Officer

Step 4: Stipulations on spending returned overhead

  • Funds must be spent within 2 years of receipt – any amount remaining will be returned to the Dean’s Office
  • Funds may only be used for HQP support, equipment repairs/services, and space renovations – other strategic uses of the overhead funding require approval by the Associate Dean of Research or their delegateÌý

How to apply for a reduction in overhead

Step 1: Determine your eligibility – at least one of the following conditions must be met

  • Your research sponsor is an active Registered Charity in Canada
  • Your research sponsor is an Indigenous group, community or organization
  • Your research sponsor is contributing at least $250,000 CAD in cash to the project
  • There are extraordinary circumstances requiring a reduction in overhead

Step 2: Submit an application

  • A completed application form must be submitted prior to the submission of an Office of Research cover sheet

Step 3: Application review

  • Your application will be reviewed by the Associate Dean of Research or their delegate
  • Applicants will be notified of the results in writing
  • Successful applicants will receive a copy of their application bearing the Associate Dean of Research’s signature

Step 4: Actions required after receiving a reduction in overhead

  • A copy of the approved form, bearing the Associate Dean of Research’s signature, must be attached to the submitted Office of Research cover sheet as proof of reduced overhead