Indirect Cost Recovery Distribution Policy

Federally sponsored research grants and contracts usually include a reimbursement to campus of indirect costs. The amount campus receives for indirect cost recovery (ICR) is determined by negotiated reimbursement rates, which are tracked by the Office of the Vice Chancellor for Research and Innovation.[1] ICR costs pertain to either facilities and administration (F&A) or to tuition remission. Campus distributes a significant portion of these reimbursed costs to the colleges and units in which research and programs occur.  

In accordance with Provost Office’s ICR distribution policy, the standard proportion of the reimbursement for F&A that campus receives that is in turn distributed to colleges is 45%. By contrast 75% of the ICR earnings related to tuition remission is in turn distributed to the college of enrollment of the employed RA.  Beginning FY25, the full 45% and 75% of the tuition remission that flows to the College will in turn be allocated at the discretion of the Dean to optimize resources. 

[1] As the Facilities & Administrative (F&A) rates – Business & Finance web page notes, the federally negotiated reimbursement rates for F&A as of FY25 vary with the nature of the sponsored activity. For on-campus activities, the rate is 58.6% for sponsored research, 44.9% for sponsored instruction, and 31.7% for other sponsored activities. For off-campus activities, research has a 25.9% rate, instruction has a 26.0% rate, and other sponsored activities have a 21.7% rate. 

Date Implemented Summer 2024.