Vice President for Research & Creative Scholarship
Vice President for Research & Creative Scholarship
These guidelines reflect administrative practice regarding the distribution of facilities and administration (F&A) costs recovered in connection with external grants awarded to The University of Montana on behalf of faculty and staff serving as principal investigators. These guidelines strive to import a coherent and transparent allocation process that fosters rational, accountable, and well-informed institutional investments into projects and infrastructure that significantly enhance research and scholarship pursued at the University. Funds recovered from F&A are used for the ongoing support of the research enterprise.
Costs incurred by the University relating to externally-funded projects can be understood as “direct costs” or as “indirect costs,” also known as F&A.
“Direct costs” are those costs that can be linked directly to a particular sponsored project with a high degree of accuracy. Direct costs must be reasonable and allowable in context of the sponsored project, and clearly allocable to that project.
“Total direct costs” are the sum of all direct costs relating to a sponsored project.
“Total modified direct costs” are the sum of all direct costs relating to a sponsored project minus the following: equipment, capital expenditures, tuition remission, rental costs, scholarships and fellowships, and the cost of each subgrant in excess of the first $25,000.
“Facilities and Administration” (F&A) Costs or, “Indirect Cost Recovery (ICR),” are costs incurred by the University for common or joint projects and cannot be specifically attributed to an individual project. Some examples of indirect costs include accounting staff, the maintenance of physical facilities, building depreciation, libraries, operations, affirmative action monitoring, protection of animal and human subjects, computer infrastructure, custodial services, environmental health and safety, employee benefits, purchasing services, and security services.
F&A costs are recovered from the funding agency – when allowed – in recognition of the real and unallocable costs incurred by the University when hosting a sponsored activity. Per University System Board of Regent Policy 404 – Indirect Cost Recovery Rate, the University is required to request the total amount of F&A allowed by the sponsor. Typically, F&A costs are charged at a flat rate against total modified direct costs anticipated in connection with the sponsored activity. The default rate is negotiated between the University and a cognizant federal agency every 3 to 5 years.
The University of Montana currently operates under four separate F&A rates based on total modified direct costs, as reflected on UM’s rate agreement.
Some funding agencies allow complete recovery of indirect costs on a program-to-program basis, while others publish a hard cap on the rate at which institutions are allowed to capture these costs. Still others forbid the collection of any indirect costs at all.
There are no federal or state restrictions on how recovered indirect costs can be used by the receiving university. These funds need not be allocated in the same categories and proportions used in determining the institutional indirect cost recovery rate. Accordingly, The University of Montana has the discretion to reinvest such funds to best benefit the research enterprise.
These guidelines redirect the allocation of indirect costs captured in connection with externally-funded grants in ways that 1) enhance institutional support for research and scholarship; 2) increase faculty competitiveness in statewide and national grant competitions; 3) magnify the impact of current internal and external investments in faculty-driven research and scholarship; 4) provide direct and significant incentive for faculty, academic departments and collegiate units to invest in faculty research and scholarship; and 5) enhance the national profile of The University of Montana.
Note: For FY13 and FY14, the allocation will be reduced 8%.
Effective July 1, 2006, in cases where the funding agency commits funds for ICR and there is no commitment of matching cash from The University of Montana, captured funds will be distributed as follows:
|Office of the Vice President for Research||65%||In recognition of the unallocable costs incurred by the University in connection with externally-funded grant initiatives.|
|Dean or Director||35%||The Dean's Office provides a breakdown of how the monies are to be allocated among the Departments/PIs|
Distribution of F&A to Centers/Institutes varies and is negotiated with the Vice President for Research. Additionally, if a center is based under an academic department, a portion of that percentage may be returned to the college and department.
Co-Principal Investigators. In the case of a sponsored project that has one or more co-principal investigators, the amount of recovered indirect costs allocable to the Dean(s) will be based on an equal distribution among the number of investigators unless negotiated with the Vice President for Research prior to the grant proposal submission.
Disbursement of Funds. Units scheduled to receive disbursements of indirect cost recovery will receive their funds one fiscal year following the fiscal year the funds are recovered from external grants. For example, the F&A recovered in FY11 will be allocated in FY13.
Cash Matches. In cases where the University commits any cash match to a sponsored project, 100% of indirect costs captured by the University from the funding agency shall be retained by the Office of the Vice President for Research.
Appropriations. In cases where the University receives a sponsored project resulting from a federal appropriation, 100% of indirect costs captured by the University from the funding agency shall be retained by the Office of the Vice President for Research.
Fixed Price Residual Funds. After completion of all deliverables required under a fixed-price award, all costs in fulfilling the requirements of the award have been charged to the account, and full payment from the sponsor has been received, residual funds will revert to an account controlled by the Vice President for Research for discretionary re-investmentment in the research enterprise.In the case of the English Language Institute and summer language programs, the following distribution will be based on all of the summer programs in total:
|≤$100,000||Reallocated to the Office of International Programs SPABA Account|
||50% Reallocated to the Office of International Programs SPABA Account
50% Retained by the Office of the Vice President for Research
Office of the Vice President
Research & Creative Scholarship
University Hall 116
Fax: (406) 243-6330