ICR Expenditures in FY2024

August 7, 2024

This message was sent to all deans, vice presidents and faculty on all campuses, as well as directors and employees of centrally administered centers, institutes, museums, and service centers (CIMS), IU Research employees, and finance staff who serve IU Research.

Dear Colleagues,

In a memo to you dated August 15, 2023, I committed to regularly reporting on how indirect cost recovery (ICR) dollars under the purview of IU Research (IUR) are invested in the seven identified areas listed in the university’s ICR allocation formula. This update is honoring that commitment. In this brief report, I will summarize how ICR funds were spent in FY2024 and how IUR has committed ICR funds for FY2025.

As a reminder, per the formula, 30% of ICR dollars from grants and contracts awarded, or renewed, on or after July 1, 2023 (FY2024) are held centrally. During FY2024, 65% of those centrally retained ICR dollars were allocated to IUR for use in seven areas, and the remaining 35% to UITS for use toward research technologies. For FY2025, the split of centrally held ICR changed effective July 1, 2024 to IUR receiving 76% and UITS receiving 24%.

The following table summarizes how IUR spent the retained ICR funds in FY2024 and how it has committed ICR funds for FY2025.

IU Research - ICR Expenditures for FY2024 and Committed ICR Expenditures for FY2025

• As summarized in the table, IUR received $12.91 million in retained ICR funds in FY2024.
• For FY2025, although IUR projects to receive $21.50 million in ICR Funds, it has committed to about $31.01 million in investments. The additional funds will come from cash reserves from prior retained ICR. After FY2025, IUR cash reserves will be almost entirely depleted.
• The significant reduction in Mission Critical Infrastructure investment (both for Programs and Personnel) from about $7.0 million in FY2024 to about $2.6 million in FY2025 is the result of approximately 33% of all central IUR employees previously funded by ICR funds in FY2024 transitioning to base funding in FY2025 in accordance with our new budget model. These figures exclude CIMS employees.
• The $3.0 million committed for research renovations in FY2025 is IUR’s payment of debt associated with the $45 million bond repayment for the Faculty 100 initiative.
• The increased investment in IUR cores and CIMS from about $2.0 million to about $11.7 million is the result of several CIMS transitioning to be 100% under IUR, and the creation of new CIMS, including but not limited to: Convergent Bioscience and Technology Institute (CBATI), Institute for Human Health and Wellbeing (H2W),  IU Center for Reliable and Trusted Electronics (IU CREATE), IU Nanoscience Core Facility (NCF). A full list of centrally administered CIMS can be found here.
• The increased investment in Big Initiatives from approximately $1.11 million in FY2024 to $8.27 million in FY2025 is due to several new investments relating to the IU 2030 Strategic Plan, including: Clinical and Translational Sciences Institute, Presidential A&H Fellowship Program, Public Arts & Humanities Program, Spirit & Place, Applied Research Center, among others.
• Lastly, and importantly, the ICR totals do not include other investments made by IUR using non-ICR funds. Specifically, in FY2024 IUR invested an additional $4.57 million in Internal Funding Programs and CIMS using non-ICR funds. In FY2025, IU Research committed an additional $6.00 million in its redesigned Internal Funding Programs using non-ICR funds. In total, IUR committed nearly $37 million to support and grow research and creative activity in FY2025.

Over the past year, I have had many conversations with stakeholders around the university. I appreciate the conversations, suggestions and feedback on ways to improve the research environment at IU and to best invest precious resources. IUR is deeply committed to our service mission and transparency about how we utilize resources to grow and increase the impact of IU’s research enterprise. We will continue to ensure the services provided by IUR are meeting strategic, and real-time needs as well as planning and investing in those to come. More specifically, we will continue to monitor, report, and obtain input on IUR’s investments of retained ICR.

Given the many extraordinary events of the past year, I also want to take a moment to thank you for continuing to advance research and creative activities at IU for the benefit of our students and state, and for all who are benefiting and will benefit from the outcomes of your innovation, discovery and creative pursuits.

As always, please do not hesitate to reach out with questions, concerns, or ideas at any time to research@iu.edu or via this online contact form.

Sincerely,

Russell J. Mumper
Vice President for Research