Ball State University collects indirect costs as allowable by the federal government under OMB Circular A-21. Per the most recently negotiated rate, Ball State is entitled to receive 44.5% of Modified Total Direct Costs (MTDC) for Instruction projects, 40% MTDC for Research projects, or 42.1% MTDC for Other Sponsored agreements. MTDC is calculated as the Total Direct Costs minus equipment, tuition, and sub-award amounts over $25K) for all on-campus sponsored programs and 24% of MTDC for off-campus programs. All proposals will include the full allowable rate of indirect costs, regardless of sponsor type (Federal, Non-Federal, Industry, Foundation, etc.). That is, proposal budgets will include sponsor's published indirect cost rate. Distribution of any recovered indirect costs will occur at the end of every fiscal year with portions going to the Principal Investigator’s (PI) Research Incentive Account (5%), the Department/Unit (10%) and the remaining to the University’s General Fund. If PI(s) are unable to adhere to the Proposal Submission Policy by providing final proposal application materials to the Sponsored Programs Office at least three business days in advance of the sponsor deadline, the PI(s) and PI’(s) department will forfeit indirect cost recovery distributions during the first two years of the project. The standard distribution policy will resume if the project continues beyond this time period.
To view our rate agreement, go here: Indirect Cost Rate AgreementFor more information on Indirect Cost Distribution, see our Indirect Cost Distribution Policy, or contact Jackie Davis, (765) 285-1607.
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