A Cost Model for Basic Research Grants and Cooperative Agreements

기초과학연구의 연구사업비 모형설정

This study develops principles for determining and managing costs applicable to grants and cooperative agreements for basic research. We investigated financial management policies of funding agencies and foundations in the United States, United Kingdom, Canada, Germany, Japan and Korea. Also we surveyed opinions of researchers and research fund administrators in Korean universities. Based on our review of funding agencies and our survey, the recommended management policies for grants and cooperative agreements are as follows: (1) Cost Structure. Cost of a sponsored agreement is comprised of the allowable direct costs and allocable portion of the allowable indirect costs. Direct costs can be further divided into salaries and wages, equipment, and other direct costs. (2) Salaries and Wages. Salaries and wages applied to a grant are paid for services rendered to the project during the period of performance of the particular agreement. In order to give researchers financial incentive, researcher allowance can be paid up to 30% of his/her regular salary. (3) Equipment. Any property purchased with grants which has an acquisition cost of 5,000,000 won or more per item and a normal life expectancy of two years or more is defined as equipment. Expenditures for special purpose equipment are allowable provided the acquisition of items is necessary for the research supported by the grant. (4) Other Direct Costs. Other direct costs are comprised of travel (both domestic and foreign), materials, other costs. Other costs may not exceed 30% of total other direct costs. (5) Indirect Costs. Since there is no clear consensus on indirect costs and additional budget is necessary to support actual indirect costs, the practical policy at the moment is to give a research support expense in lieu of indirect costs. In the future, however, some form of actual indirect costs should be supported. This study develops principles for determining and managing costs applicable to grants and cooperative agreements funded by the Ministry of Science and Technology. This research can be applied to other governmental agencies to give consistency and uniformity in administration of grants and cooperative agreements.