Applications to State of Wisconsin agencies often times do not include tuition remission and indirect costs as separate line items. While this becomes acceptable if the subsequent award uses State GPR (General Purpose Revenue) funds, it is not acceptable if the award is made using Federal pass-through or formula monies, where the aforementioned costs are required budget items.

Therefore, to guarantee that sufficient funds are requested up-front, the following policy is effective immediately:

1. All extramural applications to State agencies must include tuition remission and indirect costs as budget line items. Each budget should include a footnote which states the following: "If funded with State GPR funds, tuition remission and indirect costs should be excluded from the award".
2. All awards from State agencies which result from informal discussions will be assessed tuition remission and indirect costs if Federal monies are used to fund the project. Make sure that informal quotes made to State agency representatives address those two items.

Following is a list of presently approved State agency indirect cost rates which should be used in all future applications:

15% of Total Direct Costs -

Departments of Administration, Transportation, Natural Resources, and Health and Social Services (Divisions of Health and Community Services).

8% of Total Direct Costs -

All other Health and Social Services Divisions, and the Departments of Public Instruction and Vocational, Technical and Adult Education.

Adherence to the policy discussed above will provide for less confusion and greater consistency in the administration of projects funded by State agencies. This policy is also consistent with Notice 83-3 entitled "Collection of Indirect Costs", dated October 1, 1982.