Treatment of Indirect Cost Recovery on Participant Support Costs in NSF REU submissions

Dear Colleagues:


NSF released a revised Research Experiences for Undergraduates (REU) Program Announcement today:


There is a notable change in the Program Announcement (see below), as to the recovery of indirect costs on Participant Support costs.


Effective with this REU Program Announcement, NSF no longer permits the recovery of IDC on Participant Support Costs in REU awards:


Recovery of indirect costs (F&A) is prohibited on Participant Support Costs in REU Site proposals and REU Supplemental funding requests. This limitation may entail mandatory committed cost sharing by the institution. In such cases, it constitutes an exception to NSF’s cost sharing policy.


This change does not affect the treatment of Participant Support Costs in non-REU funding.  The F2, F3, and F4 line items in an NSF budget should be included in the IDC calculation for non-REU funding.


Payments to students and qualifying non-students in F1 may be considered “scholarships or fellowships” and would be excluded from the MTDC base.  Payments to individuals whose stipend would not be considered a “scholarship or fellowship” should be included in the MTDC base.


If you should have any questions, please contact your Contract and Grant Officer.


Nancy Lewis

Director, Sponsored Projects


Sponsored Projects Administration

UCI Office of Research

5171 California Avenue, Suite 150

Irvine, CA  92697-7600

PH:  (949) 824-2897

Fax: (949) 824-2094



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