Dear Colleagues,

We are pleased to let you know that in order to establish a more equitable distribution model, effective July 1, 2014, the standard distribution of Indirect Cost Recovery generated from sponsored research will be handled for most units as follows:

• 45% of indirect cost recoveries (ICR) related to facilities and administration (F&A) will be distributed to the college/department/principal investigator.  The division of these funds within each college will be based on the college’s policy for distribution.
• 75% of ICR earnings related to tuition remission will be distributed to the academic college of the student generating the remission. The division of these funds within each college will be based on the college’s policy for distribution.

Special F&A distribution policies were developed for units not fitting the standard distribution model.  This included the large multidisciplinary units such as Beckman and IGB, along with a number of other units. The special distributions were developed to avoid creating either windfalls or deficits for units.   For principal investigators whose appointment is in an academic college subject to the standard distribution above, ICR will be returned to the home college following the standard distribution above, regardless of where their grants are managed.  A summary of the ICR distribution policies can be found here.

This new policy reflects the recommendations of the 2012 Indirect Cost Recovery Steering and Working Groups. The committees included stakeholders from a number of campus units and their report can be found here. Additional policy documents and resources for business managers will be available soon. In the meantime, if you have questions, please consult your business staff.

Ilesanmi Adesida, Vice Chancellor for Academic Affairs and Provost          

Peter Schiffer, Vice Chancellor for Research