Indirect Costs

Indirect Costs of Research (ICR)

Indirect Costs of Research (ICR) are essential expenses that support research but can’t be directly tied to a specific project. These include things like facilities, administrative support, and compliance services. They are necessary for maintaining a sustainable and effective research environment. Many indirect costs are incurred regardless of whether the application or proposal is successful.

Indirect Cost Recovery Rate

UBC requires indirect cost recovery on all newly funded research projects:

  • 25% of direct costs for government and non-profit funding
  • 40% of direct costs for industry funding

Exceptions:
Some grants have different rates based on:

  • Tri-Council funding (CIHR, NSERC, SSHRC) — ICR is recovered through the federal Research Support Fund (RSF)
  • Grant funds received under the following conditions:
    • The grant application specifies a different indirect cost recovery rate for all applicants
    • The sponsor’s indirect cost recovery rate can be verified through publicly available documents

In such cases, UBC follows the sponsor’s published rate. Faculty Deans may make decisions for cases not covered above.

ICR Distribution

If the research is not through a Senate-approved Centre or Institute:

  • 25% – Central Services (General Operating Fund)
  • 75% – Faculty Dean

If the research is through an approved Centre or Institute:

  • 25% – Central Services
  • 25% – Faculty Dean
  • 50% – Centre or Institute

(Eligible Centers and Institutes are reviewed annually in March.)

Responsibilities of Principal Investigators (PIs)

PIs are responsible for the following:

  • Including the appropriate Indirect Cost Recovery (ICR) rate in all research budgets
  • Ensuring ICR is clearly integrated into each budget line item
  • Indicating the ICR on the Research Project Information Form, which must be completed for all applications and proposals

ICR is automatically deducted from research accounts at the applicable rate as project expenses are incurred.

Research Support Fund (RSF)

The Research Support Fund (RSF) helps Canadian postsecondary institutions cover the indirect costs of managing research funded by the federal Tri-Council agencies: CIHR, NSERC, and SSHRC.

The funding formula is set by the federal government and takes into account:

  • The total value of eligible Tri-Agency grants
  • A sliding scale to determine each institution’s share of national research funding

At UBC Okanagan, we receive a portion of UBC’s total RSF funding. Our share is based on the proportion of Tri-Agency funding awarded to UBCO researchers.

RSF Distribution

UBCO allocates this funding between Central Services and the Faculties to support research infrastructure and administration.

  • 50% – Central Services (General Operating Fund)
  • 50% – Faculty Dean

Resources

Explore additional resources on indirect costs of research.

UBC Policy on Indirect Costs of Research Calculating Indirect Costs of Research: Okanagan
Research Policy (Policy LR2) Sponsor rates (posted in RISe under the ICR Rates tab)
Research Support Fund ICR FAQ