1. & & YORK RESEARCH In Over Your Head with Overhead? Michelle Lindsay Associate Director, Research Agreements & Intellectual Property

2. & YORK RESEARCH Myths About Overhead 1.It’s a tax on research. 2.It’s a commission for the Office of Research Services. (We wish!) 3.“I can’t do the research if you make me include overhead.”

3. & YORK RESEARCH What is Overhead? What is overhead? How is it calculated? What are the questions to ask yourself/ the sponsor?

4. & YORK RESEARCH Which Rate to Use? Unless the RFP or guidelines say otherwise... Contracts 40 per cent on all direct costs Grants 15 per cent on all direct costs

5. & YORK RESEARCH Examples Ontario Centres of Excellence Inc. – 35 per cent on both industry and OCE funds PWGSC (federal contracts) – 65 per cent on personnel (salary + benefits) – 2 per cent on travel and living expenses Ontario Ministry of Health & Long Term Care – 30 per cent on all direct expenses When in doubt... ask ORS!

6. & YORK RESEARCH Two Calculation Examples 1.Calculation on direct costs: Personnel$10,000 Equipment$10,000 Travel$10,000 Overhead (40%)$12,000 Total Amount$42,000 2.Calculation on ceiling amount: Proposals must be under $100,000 with OH no more than 30 per cent. 100,000/1.30 = $76,923 for direct costs. Leaves $23,077 for overhead.

7. & YORK RESEARCH Questions to Ask –Are there contract terms? Is the sponsor asking for a specific deliverable? –Do the funding guidelines make reference to overhead as eligible/ineligible? Is there already a specific rate allowed? –Is the program limited in what indirect costs it will fund (e.g., rent, hydro, copies, but not institutional overhead, etc.)?