CAE rules for OverHead and Coverage of fixed costs

Overhead (OH)

Remember to include OverHead in the budget if the fund allows it. Some funds do not allow OH, while others allow up to 44% OH. If you are in doubt as to whether the fund allows it, read the application instructions or ask the CAE scientific coordinator or the TECH research support unit (see contact information on the right).

Overhead (also called administration fee by some) covers indirect costs associated with completing your project. These can be, for example, expenses for rent, heating, electricity, office supplies, telephone bills, administration, etc.

Overhead is calculated as a percentage of the project's direct expenses (e.g. salary, materials, tuition fee, stay abroad, conference participation and publication/distribution). The percentage varies from fund to fund and may also depend on which institution will administer the grant. Always use the percentage specified in the fund's notice. Many private foundations do not provide overhead.

State funds/grantors such as the Independent Research Council give 44% in overhead to universities. 

Read any more on the research support unit's website.

Coverage of fixed costs

Remember to include coverage of fixed costs in the budget based on how much OH is allowed. Some funds do not allow to add coverage of fixed costs, but many do. If you are in doubt about coverage, ask the CAE scientific coordinator or the TECH research support unit (see contact information on the right).

Coverage is when you write existing and project indirect costs on the budget. That is you ask the fund to cover some expenses you have regardless of what. It is typically one's own salary and the salary of technicians and other administrative staff.

Funding should not be confused with co-financing, which you can read more about further down the page.

Some funds allow a so-called Bench fee instead of coverage of fixed costs, i.e. an amount to cover costs that CAE incurs in completing a project, e.g. technicians salary, wear and tear on laboratory equipment etc. If you use a Bench fee, no coverage of fixed costs should be applied to the budget. Read more about the Bench fee further down the page.

Bench fee

Bench fee is an estimate of research-related costs, and typically includes shared laboratory and workshop costs, consumption of water, electricity, gas, materials, etc., maintenance, service, technical support, IT support, etc. Bench fee does not include costs for rent, administration, representation etc. A Bench fee has been calculated for each department, and for CAE the rate is shown below. The cost is entered in the project in relation to the number of VIP months worked on the project.

It is CAE's policy that the Bench fee must be applied if the funds allow for it, e.g. Novo Nordisk Foundation. In those cases, the Bench fee will substitute for coverage of fixed costs which should not be added. However, overhead should still be added to the budget to cover rent, administration, etc. if the fund allows for it.

CAE Bench fee = DKK 6,936 per VIP month (click on link to download statement)

Co-financing

Once you have made a budget for the costs of completing the project, a budget must be made for how this is financed. The financing comes either as external financing from foundations, companies, etc., or as our own co-financing, i.e. time and money that CAE (or other partners in the project) put into the project. Some foundations require a degree of co-financing, others do not. The co-financing is either in-kind (the value of hours from VIP & techniques, equipment, etc.) or as in-cash (money). 

Example budgets

Below are fictive examples of budgets that show with explanations how Overhead, cover, bench fees and co-financing are calculated.

• Example 1
• Example 2