Carrying out research related activities at LUMS requires the use of general physical and administrative facilities of LUMS for which the university needs to be compensated. Thus, LUMS charges a financial overhead (indirect cost) from the externally funded programmes at the rate of 30/130 of the total project cost, unless otherwise restricted by the sponsor.
In case of consultancy projects, overhead is calculated at the rate of 30/130 of total consultant(s) fee.
While the bulk of overhead amount is directly retained by the university and included in the total revenue earned, a portion of the funds is distributed to the relevant school to support seeding of research activities, with the remaining funds being placed with the Principal Investigator (PI) for his/her academic and research use. For funded research projects that generate overhead, the distribution of overhead income within the University is as follows:
University takes upon payment (LUMS share) - 65%
The relevant School receives (Department share) - 20%
The PI receives (Grantee share) - 15%
In case of consultancy projects, overhead is transferred wholly to the University.
In case of research projects undertaken by a LUMS research centre, grantee share of the overhead shall be transferred to the research centre’s account. Thereafter, these funds shall be placed at the disposal of the head of that research centre.
For more information, click here: Overhead Account Policy