Administrative Overhead Cost (AOC)

Q: Where was the Administrative Overhead Cost derived?

A: The Administrative Overhead cost is derived from the Total Budget of the study. The Total budget is the sum of the personal services (PS) and maintenance and other operating expenses (MOOE). Personal services include the compensation of the staff and other personnel that may be required for the entire duration of the project. The MOOE are the expenditures of the project (i.e. communication, travel, and supplies and materials). The rate for the Administrative Overhead Cost for non-government sponsored researches is 15% of the total budget, while 7.5 % for government-funded researches.

Q: What does the Administrative Overhead Cost covers?

A: The AOC covers the UPMREB review fee, including the continuing review and IACUC review fee.

Q: Where does the Administrative Overhead Cost proceed?

A: 80% of the administrative overhead cost goes to the Research Unit fund (RUF). The University Administrative Overhead Cost refers to expenses incurred by the University for accounting and bookkeeping, personnel support services, maintenance of facilities, utilities, etc. which are not provided for in the itemized budget of a research project/program. These are indirect costs of a research project/program borne by external funding agencies.

The Administrative Overhead Cost paid by the study sponsor is shared equally between the Research Grants Administration Office and the Research-Generating Unit to which the Principal Investigator belongs to. The share of the AOC of the Research-Generating Unit will henceforth be referred to as Research Unit Fund (RUF).

The RUF can be used for the following purposes:

  1. To help shoulder the utilities and maintenance bills.
  2. To provide assistance to academic programs, such as the acquisition of equipment and supplies and materials in support of such programs.
  3. To help upgrade the library collection of the University.
  4. To grant salaries/honoraria/incentive pay to deserving personnel and/or offices providing service to the research/project/program.

The amount to be allocated as salaries/honoraria/incentive pay to deserving personnel shall in no case exceed fifty percent (50%) of the share of the administration for research/project/program and in no case shall any part or portion of that honoraria be paid to any personnel of the University who is not involved in providing administrative support to the projects as approved by the appropriate University official.

10% of the Administrative overhead cost goes to the site of the study (i.e. PGH) and the remaining 10% goes to the College unit in which the principal investigator is affiliated.