AY2025-26 Financial Accountability in Research (FAIR) Budget Transition Working Group

Working Group Members

  • Paul Redman, Office of the Provost, Chair
  • Shelly Benson, Government Costing, University of Illinois System
  • Dan Harmon, Sponsored Research Administration
  • Tessa Hile, Grainger College of Engineering
  • Anne Marshall, Office of the Provost
  • Sharee Robinson, Office of the Vice Chancellor for Research and Innovation
  • Mike Wellens, College of Liberal Arts and Sciences
  • Xiaobei Chen, Office of the Provost, ex officio
  • Jamie Hackett, Office of the Provost, ex officio

Charge Letter

Dear Colleagues,

Thank you for agreeing to serve on the FAIR Budget Transition Working Group. Your participation is critical as the University of Illinois Urbana-Champaign prepares for the potential adoption of the federal Financial Accountability in Research (FAIR) proposal. This initiative represents a significant shift in how research-related costs are categorized, recovered, and managed, and your expertise will help guide the campus through this transition.

The working group is charged with assessing the potential budgetary and operational impacts of the FAIR proposal on Illinois and recommending necessary changes to the campus funding model, including the Integrated and Value-Centered Budgeting (IVCB) framework.

The FAIR model introduces a new structure for classifying research-related expenses, replacing the traditional Facilities and Administrative (F&A) structure with new categories such as General Research Operations (GRO), Essential Research Performance Support (ERPS), and Research Performance Costs (RPC). This reorganization affects cost recovery mechanisms, the potential expansion of service centers, the allocation of central funds, compliance and audit procedures, and the design of budget planning and proposal systems. These changes will require a comprehensive reevaluation of how research support is funded, tracked, and administered across campus.

To address these challenges, the working group will concentrate on the following key areas:

  1. Impact Analysis
    • Model financial implications of transitioning from F&A to FAIR.
    • Assess changes to IVCB and central fund distributions at a high level.
    • Evaluate effects on units currently funded via ICR or state allocations.
  2. Operational Planning
    • Identify systems and processes needed to support FAIR (e.g., effort tracking, proposal budgeting).
    • Recommend strategies for managing service centers and avoiding duplication.
    • Explore implications for compliance, audit readiness, and reporting.
  3. Strategic Recommendations
    • Propose budget model adjustments and funding reallocations.
    • Develop a transition roadmap aligned with the anticipated FY 2028 implementation.
    • Draft guidance materials and standard operating procedures (SOPs) to support campuswide adoption.

The working group is asked to produce a series of key deliverables that will guide the campus through the FAIR transition. An interim report will be submitted by December 2025, providing a preliminary assessment of financial and operational impacts, along with early recommendations for campus planning. Final recommendations will follow in March 2026, including proposed budget model adjustments, funding reallocations, and strategic guidance for implementation. In addition, the group will develop a comprehensive implementation roadmap, accompanied by supporting materials such as guidance documents and standard operating procedures, to facilitate campuswide adoption and readiness ahead of the anticipated FY 2028 rollout.

Additional members may be added to this working group as needed to ensure representation from key administrative and academic units.

Thank you again for your commitment to this important work. Your insights will be instrumental in shaping a sustainable and compliant research funding model for the future.   

Sincerely,

John Coleman
Provost

Office of the Provost
Swanlund Administration Building
601 E. John Street, MC 304
Champaign, IL 61820
(217) 333-6677