INDIRECT COST DISTRIBUTION POLICY
This policy governs the distribution of indirect costs for awards of external funding received by faculty, institutes, and academic departments. The President may elect to discontinue or modify this policy at any time.
II. APPLICABILITY.
This policy applies to all covered external funding and to all faculty, institutes, and academic departments.
III. DEFINITIONS.
Department 鈥 an academic department of the College.
Indirect Costs 鈥 are expenses incurred by the College in performing the activities associated with external funding, but which are not directly attributable to the specific activities of a single fund. Also known as "Facilities and Administration" or "F&A" costs for federally-funded grants or 鈥渋ndirect expenses鈥 for privately-funded grants. The formula for determining the amount of recoverable Indirect Costs is provided in the agreement between the College and the granting agency.
Institute - an academic entity affiliated with the College but separate and distinct from an academic department.
IV. POLICY.
A. Cost Sharing and Eligibility
Generally, Indirect Costs can be recovered by the College and shared with the Department or Institute that was awarded the funds. This is known as 鈥渃ost sharing.鈥
To be eligible for cost sharing:
- The grant must be processed through the College's grant checklist procedure and receive all required approvals prior to submission to the granting agency; and
- Following the award of a grant, the Department or Institute must prepare a proposal for the use of shared funds and submit the proposal to the Dean of the College for approval or revision. Upon approval by the Dean, the Business Office will create an account for the Department or Institute and transfer the cost-sharing funds.
B. Amount of Cost Sharing
Institutes and Departments seeking external funding for research, teaching and other activities that support the College's mission will receive thirty-five percent (35%) of the Indirect Costs received in that year. The College will allocate the funds to the Department or Institute of the principal investigator(s). If the College is matching funds, that amount shall be deducted from the Indirect Costs recovered before the departmental or institutional allocation is provided. If a grant involves faculty from more than one Department or Institute, the departmental or institutional allocations will be assigned to the relevant Departments based on the percentage of time spent by the faculty members involved.
Institutes or Departments that contribute a three-year rolling average of $75,000 or more to the College鈥檚 recovered Indirect Costs will receive fifty percent (50%) of indirect costs.
When a grant is deemed to be "institutional" in origin and effort, the Dean of the College will serve as the principal investigator and Indirect Costs will not be shared with a Department or Institute.
V. POLICY HISTORY.
Responsible Officer(s): VPFPO
Last Revised Date: July 23, 2024