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Affiliation, Mentor and Sponsored Programs Costing Guidelines

 

Purpose

The governing body of private higher education for profit in Kuwait is the Private Universities Council (PUC).  The PUC encourages affiliations and mentor relationships with universities of world class reputations as reflected in the various recognized ranking agencies, e.g., The Times, U.S. News and World Report and QS, among others.

 

Gulf University for Science & Technology(GUST) has a group of investors that expects a reasonable rate of return.  These guidelines are constructed to enable GUST management, through the guidance of its Board of Trustees, to enter into negotiations with affiliated, mentor or sponsoring organizations knowing in advance the parameters they must operate within.

 

These guidelines not only protect the GUST investors but they also protect the affiliated, mentoring or sponsoring organization that they are being treated in a matter that is fair and consistent with all other organizations seeking the same/similar relationships.  In addition, GUST wants to reimburse all reasonable expenses associated with the agreement.  The reimbursements typically will be one of the following two types:

 

Variable costs also referred to as marginal costs are those cost specifically associated with the relationship.  These are typically cost that are incurred as a direct result of the relationship.  If the relationship did not exist, the cooperating organization would not otherwise incur these expenses.  Examples would be expenses associated with faculty or administrator’s travel to Kuwait, or the full burdened salary of personnel employed and dedicated to the relationship on the cooperating organization campus.

 

These costs will be reimbursed either directly to the faculty or administrator or to the relationship organization who will then disperse the reimbursement.  This will be determined at the time the relationship agreement is negotiated.  Local taxing issues may be a significant consideration.

 

Fixed costs are those the organization would incur if they had not entered into the relationship with GUST.  Typical examples are rent, utilities, IT, etc.  GUST is aware that the relationship organization assume additional fixed costs burden as a result of their entering into the agreement with GUST, GUST is willing to reimburse for reasonable portion of the fixed costs.

 

Requests for dedicated research resources, e.g., labs, special equipment, research assistance are outside the purview of these guidelines and must be negotiated separately with funding sources identified, e.g., public or private grants.

 

The maximum overhead that will be paid for an affiliation, mentoring or sponsored program under the terms of these guidelines is 10 (ten) percent.  This is the maximum.  However, there are situations where the rate will not be 10% as described in the table below:

 

Type of Organization

Maximum Fixed Cost Reimbursement Rate (%)

Private & Government Foundations, e.g. Kuwait Foundation for Scientific Research, Kuwait Institute for Scientific Research

0 (zero)

Universities

10 (ten)

Government Agencies domestic or foreign

7.5 (seven and one-half)

All others

Negotiable to a max of 10(ten)

 

It is important to emphasize the maximum fixed cost reimbursement rate is not automatic, it must be substantiated, e.g., UMSL@10% vs NUS@5%.  Furthermore, the rate must withstand the audit of the Kuwait State Audit Bureau which has verification responsibility for all government agencies which includes the Private Universities Council and its members.