Indirect Costs Practice
As a policy, Western applies 40 per cent indirect costs on all direct costs of sponsored research. Direct costs include salaries, equipment, materials and reagents, and travel. Overhead, or indirect costs, are actual costs the university incurs to support research at Western, including maintaining laboratories, facilities and equipment, staff and administration.
As a means of ensuring flexibility and competitiveness, the Vice-President (Research) has provided standing negotiated modifications to indirect cost rates — as outlined in the diagram below, — which are the minimum values to be applied at a researcher’s discretion.