Fund Account Overhead Rates*

This summary provides an overview of the current Institute policy on the normal fund account overhead rates and bases. Since this policy is established by the Provost’s Office, any exceptions to the policy are applied as authorized by the Provost’s Office.

The fund transaction fee is 10% and is generally applied to all direct costs on fund accounts with certain exceptions. (See the chart below for the applicability of overhead rates on fund account cost items and exemptions.)

The normal fund account base is applied in SAP via Costing Sheet FUNSN. Instructions for locating detailed information on the cost elements that are included in and excluded from the fund base is available in SAP for MIT Documentation on the Web, Advanced Topics and Tips: CEMIT-G Cost Element Group.

Cost Item on Fund Account
(Cost collectors range 2000000 – 4479999)

Applicable Fee or Rate

Faculty Salaries (including summer salaries)
& Associated EB

No Fee

Student Salaries

No Fee

Graduate Student Research Assistant Salaries
(GL accounts 400706 and 400708)

Fund Fee

All Other Salaries & Associated EB

Current Research F&A Rate

Graduate Student Research Assistant Tuition
(GL acount 422310)

Fund Fee

Teaching Assistant TuitionNo Fee
Fellowship TuitionNo Fee

Equipment: Major & Minor

Fund Fee

Most Other Direct Expenses** (materials, travel, etc.)

Fund Fee

This summary describes normal Provost base and rate and does not address classes of exceptions (e.g. Pool A endowments).

* Established by the Provost’s Office, this policy was originally communicated to the MIT community via a memo dated August 9, 1995, and was later modified by a memo regarding Graduate Research Assistants dated May 7, 1999.

**SAP Cost Element Group CEMIT-G displays which costs are included in or excluded from the fund base.