Budget & Payroll
20.07 Distribution and Use of Indirect Cost Issued: November 16, 1998
Updated: May 15, 1998
1. Purpose
The University earns indirect cost on grants and contracts. The purpose of indirect cost is to
help pay for the associated overhead costs incurred by the University.
2. Distribution Methodology
Indirect Cost will be distributed as follows:
2.1 Academic Department
| General University Operating Budget |
50% |
| Vice President Research & Development |
8% |
| Office of Sponsored Programs |
12% |
| Dean |
5% |
| Department Head |
5% |
| Principal Investigator |
20% |
| Total |
100% |
2.2 Centers
| General University Operating Budget |
50% |
| Vice President Research & Development |
8% |
| Office of Sponsored Programs |
12% |
| Dean |
5% |
| Center Director |
15% |
| Principal Investigator |
10% |
| Total |
100% |
2.3 Non-Academic Departments
| General University Operating Budget |
50% |
| Office of Sponsored Programs |
12% |
| Principal Investigator |
38% |
| Total |
100% |
3. Distribution Date
The University makes the distributions on a monthly basis.
4. Use of Indirect Cost
4.1 Generally, indirect cost funds can be spent for any Educational & General purpose.
Essentially this means that they can be spent for anything that state funds can be
expended for.
4.2 The above not withstanding, the Federal Government has defined in OMB Circular
A-21 (Section J) specific expenses it has determined to be allowable or
non-allowable. These restrictions must be adhered to.
4.3 Indirect cost funds may not be used to supplement the salary of the Principal
Investigator.
5. Accounting for Indirect Cost Funds
5.1 Indirect cost funds used to support the E&G budget are deposited in the state
treasury along with tuition and lab fees and are used to support all E&G operating
accounts.
5.2 Indirect cost funds held locally are put into separate designated fund accounts
specifically earmarked for indirect cost use. These funds may not be transferred to any
account, except for another indirect cost account.
Contact Person: Controller
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