CAFLS Return of Indirect Cost Incentives Policy

Section:  College of Agriculture, Forestry, and Life Sciences

Subject:  Return of Indirect Cost Incentives to the Departments

Effective:  July 1, 2009

Statement:

Indirect cost incentive returns are based on prior fiscal year spending for all fund 20 project grants

Purpose:

A policy is needed to provide financial incentives to encourage faculty to seek sponsored research funding to advance their research endeavors.

Discussion:

The College should officially adopt the University's policy of indirect cost incentives returns to the College Dean, Department, and the Principal Investigator.

Policy:

The University's policy of indirect cost incentive return distribution was adopted on March 23, 1998.  The University keeps 60% centrally and returns 40% to the College.  The policy states that "there will be a minimum incentive fund equivalent to 30% of the collected indirect costs returned to the Principal Investigator plus the Department."  Thus, the indirect cost incentive return distribution policy for the College of Agriculture, Forestry and Life Sciences will be 25% of the funds returned to the College (10 of the 40% returned) are retained by the Dean, while 25% (10 of the 40% returned) goes to the Department, and 50% (20 of the 40% returned) goes to the Principal Investigator.

This policy applies for all indirect cost incentives returned to the College inclusive of E&G and PSA returns.  Currently, E&G indirect cost returns are done once per fiscal year and PSA indirect cost returns are done twice per fiscal year.  Funds balances at the end of the fiscal year in the indirect accounts will be carried over into the next fiscal year normally.  However, there may be deferrals of indirect cost returns carry over in times of budget crisis.

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