The UW does not recover all the indirect costs that support research and other sponsored activity for a number of reasons, including Federal government caps on administrative costs related to faculty administrative effort, including proposal preparation, and an overall cap on total institutional administrative costs within both academic units as well as central administrative units. Another significant impact on the recovery of indirect costs involves sponsors and certain sponsored agreements that do not reimburse at the full negotiated indirect cost rate. These sponsors and agreements fairly consistently result in an under-recovery of indirect costs of approximately 25%.
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