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 programs at the rate of 30/130 of the total project cost, unless otherwise restricted by the sponsor.
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:
DISTRIBUTION OF OVERHEAD FUNDS