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Class Codes & Definitions for Sponsored Awards

Also see:

This page provides class code definitions, the applicable sponsored award types, and helps determine the correct Facilities and Administrative (F&A) rate (sometimes referred to as Indirect Cost rate or IDC rate) on sponsored projects. Class Codes are mandatory for U-M's financial system to classify all expenditures appropriately.

When preparing a Proposal Approval Form (PAF) for proposal submission or award setup in eResearch Proposal Management (eRPM), the Class Code is required and labeled as “Proposal Type/Class Code."

The correlating F&A rate is listed below. Consult the current F&A rates and ORSP's indirect cost (IDC) policy page for full details, and note that these rates are in effect until the next rate agreement is negotiated.

Instruction:

Click to expand to see PAF Category & Class Codes. 

General Academic Instruction (11000) - IDC Rate: 54% (On-campus) 

  • Course preparation and grading
  • Creating educational materials (i.e. textbooks, manuals, books for classroom use)
  • Supervision of teaching assistants, and faculty scholarly activity not separately budgeted and accounted for on a project basis.
  • Instructional committees: Academic Standing, Admissions, Curriculum, Fellowship, Lecture, Minority Student Recruitment, and Scholarship.
    Note: Cost sharing for these awards must also use this Class.
    Edits: Not allowed in central University administrative units. 

Approved Indirect Cost Rate through June 30, 2024 for On-campus Instruction: 54%
Approved Indirect Cost Rate through June 30, 2024 for Off-campus Instruction: 26%

Instruction - Research Training Grants (16000) - IDC Rate: 54%* (On-Campus)

  • Training of individuals in research techniques.
  • Pre- and post-doctoral training awards
  • Fellowships 

Three basic characteristics of a Research Training Grant/Fellowship:

  1. The individual is not a permanent employee of the University. The individual's involvement is as a trainee. In most instances, the award is made to an individual who is not the principal investigator (PI) in the eyes of the U-M.
  2. Stipends and/or Tuition are the primary budgeted expenditures.
  3. The award document includes verbiage of sponsor or mentor.

Some examples where the rate may vary:

  • NIH awards with the following NIH grant number prefixes F (F31, F32), T (T32, T35) & some K awards (specifically Institutional Career Development awards - K12, KL2, KM1) 
  • NSF-IGERT (Research Training awards from NSF)

CAUTION: Awards titled "Fellowship" or "Research Training" by the sponsor may not fit the University's definition of Research Training Grant. Often an award issued to a faculty member or researcher is Organized Research.

 

* The indirect costs of Training Grants are often stipulated by the sponsor’s guidelines or funding announcement.  See ORSP & U-M Policies on F&A Rates and please check with your school or college dean-level research administration office to confirm. 
 

Approved Indirect Cost Rate through June 30, 2024 for On-campus Instruction: 54%
Approved Indirect Cost Rate through June 30, 2024 for Off-campus Instruction: 26%

Research: 

Click to expand to see PAF Category & Class Codes.

Organized Research (22000) - IDC Rate: 56% (On-campus)

 
  • Research sponsored by federal and non-federal agencies and organizations
  • Managed within academic units, institutes, or research centers
  • 50% or more of U-M employee personnel effort (including cost-shared effort) is performed in facilities owned or leased by the University

Examples:

  • Writing and/or analyzing the findings of research already performed under a separate award
  • NIH Individual Career Development Awards (K awards, excluding Institutional Career Development awards K12, KL2 & KM1) 
  • Developing training programs that are not course and curriculum development. See Class 11000, General Academic Instruction.

Comparative Examples:

  • Example of 22000: Develop training program to teach researchers in a foreign country to be better researchers.
  • Example of 11000: Develop course program materials for a joint program in Social Work and Public Health (a for credit course).

Approved Indirect Rate through June 30, 2024 for On-campus Research: 56%

Organized Research (22100) - IDC Rate: 26% (Off-campus)

 
  • Research sponsored by federal and non-federal agencies and organizations
  • Managed within academic units, institutes, or research centers
  • 50% or more of U-M employee personnel effort (including cost-shared effort) is performed in facilities neither owned nor leased by the University. DOES NOT include effort of non-U-M employees (i.e. Sub-contract employees)
  • NIH Individual Career Development Awards (K awards, excluding Institutional Career Development awards K12, KL2 & KM1) 

Research and Synonymous terms:
Consider, Explore, Observe, Study, Develop, Investigate, Probe, Discover,  Search, Examine, Inquire, Seek
 

Approved Indirect Cost Rate through June 30, 2024 for Off-campus Research: 26%

Other Sponsored Activity (OSA):

Click to expand to see PAF Category & Class Codes.

Public Service, Other Sponsored Activity (31000) - IDC Rate: 29% (On-campus)

 
  • Activities that provide a service to the public
  • Activities funded by a single external sponsor and allow access to University resources

    Examples:
    • U-M employees acting as consultants as industry partners
    • IPA Agreements
    • Routine/Commercial Testing
    • NIH R13 Grants for Scientific Meetings
    • Conferences/Scientific Meetings 
      • If the conference is part of another program, then use the same subclass the program uses. For example, the Conference for Young Scientists is considered part of their research training activity, so the appropriate subclass is 16000 is appropriate (used for research training grants).
         

Approved Indirect Cost Rate through June 30, 2024 for On-campus Other Sponsored Activity: 29%
Approved Indirect Cost Rate through June 30, 2024 for Off-campus Other Sponsored Activity: 26%

 

Clinical Trial Site Activity (31200) - IDC Rate: 29%

 

A specific subset of Other Sponsored Activity with the following characteristics:

  • Human clinical trials where U-M is a participant site in a multi-site trial on a protocol held by the external sponsor
  • U-M work involves the collection of data on a study cohort and return of that data to the Data Coordinating Center (DCC) or external sponsor for use.
  • Can be Interventional or Observational in nature

Examples:

  • Phase III drug trial for Pfizer pursuing IND approval with the FDA
  • 31200 Clinical Trial Site Activity excludes projects where U-M serves in a lead role; for example: contributing to protocol development, managing / overseeing the collection of data from other sites, or having the responsibility to direct (independently) the U-M statement of work.
  • The application of Facilities & Administrative Costs (or indirect costs or IDC) for Clinical Trial Site activity will be based on the Prime Sponsor of the project:
  • Phase IV, post-market protocol collecting patient data on behalf of Eli Lilly for further FDA review
  • Federally sponsored grant or contract where U-M is a participating site following the sponsor protocol and returning study data.
  • Observational protocol comparing patient responses to an implanted device where U-M is a participating site and sends the collected data to the sponsor.

Approved Indirect Cost Rate through June 30, 2024 for On-campus Other Sponsored Activity: 29%
Approved Indirect Cost Rate through June 30, 2024 for Off-campus Other Sponsored Activity: 26%

 

FAQs

Full recovery of indirect costs is expected regardless of school, college, or sponsor. See our page on F&A rates and policies. To ensure accuracy, check with your dean-level research administration office.

Questions?

For questions or clarification, please contact the Office of Cost Reimbursement and visit the Office of Cost Reimbursement website. 

Produced by: const@umich.edu
Posted on: Wednesday, July 17, 2024 - 05:21