Indirect Cost Recovery (ICR) Allocation Formula

Indirect Cost Recovery (ICR) Allocation Formula for IU’s Centrally Administered Centers, Institutes, Museums and Service Centers (CIMS)

December 11, 2023

Purpose

Great research-intensive universities have strong centrally administered Centers, Institutes, Museums and Service centers (CIMS), which include campus-wide CIMS, that serve to invite and coalesce faculty, staff and students from across the university to address research topics or themes of profound societal importance and/or provide state-of-the-art equipment, technical services and other essential support. IU's centrally administered CIMS are a conduit for the university to address grand challenges and provide solutions and innovations to an extent not possible in their absence.

The purpose of this allocation formula is to establish the Indirect Cost Recovery (ICR) model for CIMS reporting to IU Research. The model provides a standardized approach to ICR distribution that will be clear, uniform and easy to execute and scale. This allocation formula applies only to centrally administered CIMS reporting to IU Research and not to such entities embedded in schools. The model is intended to be highly entrepreneurial to catalyze more and larger interdisciplinary grants and contracts, and/or highly valued infrastructure or services that can advance the research mission of IU and progress toward the IU 2023 Strategic Plan.

Guiding Principles and Allocation Formula

  1. This ICR allocation formula is effective on February 1, 2024, for all new grants/contracts submitted through centrally administered CIMS. The formula will not be retroactive, apply to current grants/contracts or their renewals.
  2. Centrally administered CIMS represent a mutually beneficial partnership between IU (through IU Research) and the schools/colleges and campuses. IU benefits because CIMS represent a conduit for IU to pursue big ideas and externally funded partnerships through the interdisciplinary collaboration of faculty, staff and students as envisioned through the IU 2030 Strategic Plan. The schools/colleges and campuses benefit by providing their faculty, staff and students the opportunity to pursue and lead large scale interdisciplinary initiatives. IU Research has the responsibility to support CIMS to ensure that each is fulfilling expectations and providing strong mutual benefit.
  3. To the fullest extent possible under current cost-accounting standards, IU Research will attribute both award credit and R&D expenditure credit back to the school/college and/or discipline where the named investigators on any specific externally sponsored grant or contract have their primary appointment.
  4. Indirect Cost Recovery (ICR) for centrally administered CIMS will be as follows:
    1. Interdisciplinary centrally administered research Center/Institutes
      1. ICR for PIs with tenure homes in colleges/schools will be split 30% to IU University Administration, 10% to PI(s), 20% to college/school and 40% to center/institute. ICR for non-tenure track faculty and/or research track staff PIs whose appointment is in the center will be split 30% IU University Administration, 10% to PI(s) and 60% to center/institute.
    2. Centrally administered Core Services and Facilities
      1. Core Services and Facilities will be financially supported by a combination of IU Research and standard fee-for-service charges. However, on occasion the Core Service or Facility may apply for external grants or contract to support its mission. In this event, ICRs for Core Services and Facilities will be split 30% to University Administration and 70% to Core Service and Facility.
    3. Centrally administered Museums
      1. ICRs for Museums will be split 30% to University Administration and 70% to Museum.
    4. Centrally administered State-Serving Research Centers
      1. ICR for State-Serving Research Centers will be split 30% to University Administration and 70% to State-Serving Research Center.
  5. External grant/contract applications should be run through centrally administered CIMS when significant CIMS resources are used to develop the application such that the project would or could not occur without CIMS involvement and/or when the CIMS is the primary intellectual incubator of a multi-unit or multi-institution application. Providing only contract and grant services or seed funds does not alone meet the criteria for an application to be run through CIMS.
  6. Any PI that engages with and utilizes a centrally administered CIMS to develop and submit an external grant/contract acknowledges and agrees to the terms and conditions of this ICR Allocation Formula and also agrees that no other verbal or written agreement will be substituted or used in addition to this ICR Allocation Formula.
  7. No grants/contracts should be run through a centrally administered CIMS if the grant or contract does not support the CIMS' research or service mission, infrastructure, personnel, operation and maintenance, and/or growth. Likewise, for all centrally administered CIMS, ICR must be used to directly support mission, infrastructure, personnel, operation and maintenance, and/or growth. Each year all centrally administered CIMS will be expected to report on ICR sources and uses consistent with this requirement.
  8. If there are questions about whether a grant/contract application should be run through a college/school or CIMS, the vice president for research will make the final determination.
  9. On a monthly basis, the Office for Research Administration will produce and distribute a list of all grants and contracts submitted and awarded through all centrally administered CIMS.
  10. Exceptions to this ICR Allocation Formula on a specific grant- or contract-basis may be granted with the approval of the vice president for research, after consultation with the CIMS director, dean(s) and campus research leaders (i.e., vice provost, vice chancellor). General exceptions to this ICR Allocation Formula will not be allowed except in extraordinary circumstances.
  11. For newly established CIMS, IU Research may establish a memorandum of understanding that modifies the ICR distribution above for a specified and agreed period of time. In this event, the four factors of space, salary, start-up and administrative support will guide the modified ICR distribution.
  12. This ICR Allocation Formula will be reviewed no less than annually to ensure it is meeting its stated purpose. The vice president for research will provide an annual assessment report and any suggested changes to all stakeholders for advanced comment and input. Any effectuated changes will only apply to new grants and contracts submitted and awarded.
  13. The vice president for research reserves the right to modify the terms and conditions for ICR distribution to any centrally administered CIMS if it is found to be taking actions counter to the expectations above.

Scope

This Allocation Formula applies to centrally administered Centers, Institutes, Museums and Service Centers (CIMS) that are formally designated as CIMS and report to the vice president for research, or his/her designee.

References