In a memo to the University community dated June 29, 2010, President Hall indicated that "all proposals for federal and local government funding must be routed through the Office of Sponsored Programs."

[For a copy of the memo, click on the Forms Link at the bottom of the page.]

It is OSP’s responsibility to ensure that all proposals submitted on behalf of the university (all proposals which utilize UVI facilities, resources, and/or personnel and which will be administered by the University) have been reviewed and approved by the appropriate institutional officials for consistency with UVI’s mission and resources.

The UVI Proposal Routing Form should be completed and submitted with the proposal and proposal budget to OSP prior to obtaining institutional signatures as any budget changes will necessitate re-routing. 

[For a copy of the Proposal Routing Form click on the Forms Link at the bottom of the page.]

OPS reviews all proposals for the following:

• Compliance with funding agency guidelines
• Compliance with UVI policies and budgetary guidelines
• Accuracy

Fringe Benefits Rates 

Indirect Costs Rate

The University has a federally negotiated Indirect Cost rate, which is based on real costs and is subject to audit by the federal government. All proposals submitted on behalf of the University must use the federally negotiated indirect cost rate of 65% of salaries, wages, and fringe benefits unless the following conditions apply:

• The funding agency or authorizing legislation caps or prohibits the indirect cost rate and/or changes the base of calculation. Such limitations must be reflected in the proposal or other agency guidelines as in the following examples:
  • The USDA prohibits indirect costs on some programs and caps others at 10% of Total Direct Costs.
  • The US Department of Education frequently caps Indirect Costs at 8% of Modified Total Direct Costs.
  • The Department of the Interior/Office of Insular Affairs prohibits the recovery of Indirect Costs on Technical Assistance grants.
  • Non-federal funding agencies may also limit indirect costs.
  • UVI elects to use all or a portion of its Indirect Costs as cost share on the project.

The use of Indirect Costs as cost share must be approved in advance and signed off on by the Vice President for Administration and Finance on the internal routing sheet.

UVI has a formula for distributing the Indirect Costs it receives to units within the institution that generate the indirect costs. Many departments and units rely on their indirect cost recovery to support their research and programmatic needs.