Full cost funding - regulatory letter

Last changed: 27 December 2023

When Swedish authorities finance research, they must finance the full cost according to principles stated in regulatory letters.

In SLU's (and other state universities') regulatory letter there is from 2010 the following wording on cost recovery:

"When other government agencies contri-bute to research projects, the grant must include funds for the direct and indirect costs in the same proportions as calculated for the project as a whole. This should also apply to contributions from foundations and other legal entities that were made with state funds as a basis and, as far as possible, non-state financiers as well. The indirect costs should be calculated based on the model developed by the Association of Swedish Higher Education Institutions together with certain financiers."

Only authorities with research funding as their main activity (e.g. Formas and the Swedish Research Council) have a wording corresponding to the above in their own regulatory letters. Other governmental authorities, that fund research but do not have research funding as their main business, may need to be reminded that they must fund full costs.

It cannot be taken for granted that full-cost funding means that if an application is granted, there will be a contract for the amount applied for. The financier can grant an amount other than that applied for, but the direct/indirect cost proportions must be as in a project calculation with full costs.