Indirect Cost Recovery Distribution Policy & Special Policy
Facilities and administration (F&A) charges on sponsored projects are a reimbursement from the federal government to the campus for the cost of doing research. Because colleges and units incur costs in supporting sponsored research, a portion of these charges is distributed back to them. This document outlines the principles of distribution.
Effective 7/1/2014, the standard ICR distribution is as follows for most units:
- 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.
For principal investigators whose appointment is in an academic college subject to the standard distribution above, ICR will be returned to their home college following the standard distribution above, regardless of where their grants are managed.
Special F&A Distribution Policy
The final report submitted by the 2012 Indirect Cost Recovery (F&A) Steering and Working Groups included a recommendation that special rules be developed for a number of units on campus. (View the 2012 ICR Allocation Policy Committee Final Report.)
Click the links below to view the current (FY20 – July 1, 2019) Special F&A (ICR) Distribution Policy and its previous versions.
- July 1, 2019 Special F&A (ICR) Distribution Policy
- Special ICR Policy Appendix – Distribution of F&A for Sponsored Projects Administered within the OVCRI Institutes (Effective FY20)
- July 1, 2017 Special F&A (ICR) Distribution Policy
- July 1, 2014 Special ICR Distribution Policy
What’s Changed – Effective FY20
The Special F&A Distribution Policy – Effective July 1, 2019 describes methods for the distribution of F&A, including both the overall policy and elements of the policy that apply to specific units. The title has been changed to “Special F&A Policy,” rather than “Special ICR Policy.”
Reference is made to the Office of Corporate Relations and the Research Park/EnterpriseWorks as part of the Office of the Vice Chancellor for Research. The Office of Corporate Relations moved to the OVCRI effective July 1, 2016. The Research Park moved to the OVCRI July 1, 2019.
Reference is made to University System Offices – units that operate at the System, rather than the campus level.
Changes that were pending at the time the policy was originally developed have now taken place, and the policy has been brought up to date. For example, in the section Implementation Changes by IRU, instead of reading “The Provost and OVCRI will adjust the budget allocations,” it now reads “The Provost and OVCRI adjusted the budget allocations…”
The list of units with a special F&A Distribution Policy lists the Campus-level Institutes as a group. It also includes both the Carle Illinois College of Medicine and the Urbana College of Medicine.
An introductory paragraph and Guiding Principles for F&A distribution for interdisciplinary grants to the campus-level institutes (IRUs) have been added. This is followed by implementation changes for each IRU.
The distribution for the Applied Research Institute describes an incentivized distribution.
The allocated permanent ICR budget and variable earnings for the Office of the Vice Chancellor for Research are explicitly discussed. Distribution of F&A to EnterpriseWorks, the Office of Corporate Relations, the Security Management Office, and the Carver Biotechnology Center is defined.
A table is provided that illustrates the F&A distribution to the campus-level institutes.
An appendix was added to provide guidance on the determination of whether a proposal is multidisciplinary in the context of a campus-wide interdisciplinary research institute.