Higher education officials are protesting a federal Office of Management and Budget proposal to limit the rate at which universities can charge the government for overhead expenses on research and development. The change would affect 56 of the top 100 institutions receiving federal grants, whose rates go to 41 percent. (MSE)

Stanford University (California) and the United States Navy have settled a dispute over 12 years of charges for research overhead, and the Navy has issued a rule requiring universities to negotiate multiyear overhead rates when appropriate data are available. Stanford agreed to pay back a total of $3.4-million. (MSE)

The Office of Management and Budget has adopted a policy limiting overhead expenses incurred in federally funded research to 26 percent and disallowing certain costs deemed inappropriate. Of 100 institutions receiving the most federal funds for research and development, 56 will lose money under the policy. Other reviews for reform also continue.…

As news reports continue to describe questionable charges for indirect costs in government-sponsored research, academic officials try to explain the rates, which vary greatly by institution and are based on complicated accounting formulas, to the press, alumni, trustees, and state legislators. Overhead rates, ranging from 37 percent to 77 percent,…

Under a new cost-management plan at the National Institutes of Health, overhead rates charged on research grants, as part of the total project cost, could be a determining factor on "marginal" proposals. Some feel universities will learn to be more economical; others feel the policy penalizes one group of universities. (MSE)

Recent federal audits of research project overhead charges at 13 universities uncovered over $13 million in inappropriate items. Proposals for reform include a federal upper limit on overhead rates and a fixed institutional overhead rate charged to any sponsor. Concern continues over repayment to the government of previous wrongful collections by…

A study found that a typical research university would raise its overhead rate significantly if it constructed a new building by borrowing or using its own money, but, if it won a congressional earmark, the overhead rate could decline slightly. This encourages colleges to seek construction money directly from Congress. (MSE)

The average rate for research overhead charges at major universities has declined nearly a point to 51% in the last three years, in the wake of stricter federal rules and intense political pressure. Largest reductions are at private institutions with the highest rates. (MSE)

Despite pressure from Congress and faculty, and a series of revisions in federal regulations, the average rate charged the government by universities for overhead for federally financed research appears remains high. Average rate for the top 100 research institutions is over 50%; most of the highest rates are at private institutions; all the…