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IU Rates (Fringe, Facility & Admin)
IU rates
Various rates may be needed as you prepare your proposal budget for submission to external agencies for funding.
What are Facilities & Administration (F & A) rates?
- Depreciation and use allowances (buildings, capital improvements to land and buildings, and equipment)
- Interest (interest on debt associated with certain buildings, equipment and capital improvements)
- Operation and maintenance expenses (janitorial and utility services, repairs, furniture and equipment, grounds, maintenance and operation of buildings, security, disaster preparedness, environmental safety, hazardous waste disposal, insurance, planning and management, central receiving)
These are general expenses incurred by administrative offices that serve the entire university system, including central offices of the institution such as:
- institution-wide financial management
- business services
- budget and planning
- personnel management
- safety and risk management
- the office of the General Counsel
- operations of the central administrative management information systems
Departmental administration expenses
- administrative and supporting services that benefit common or joint departmental activities or objectives in academic deans' offices
- academic departments and divisions
- organized research units, including institutes, study centers, and research centers
Sponsored projects administration expenses
Incurred by a separate organization established primarily to administer sponsored projects and may include:
- grant contract administration
- special security
- purchasing
- personnel
- administration
- editing and publishing of research and other reports
Library expenses
Includes the cost of books and library materials purchased for the library, less any items of library income that qualify as applicable credits.
Student administration and services
Administration of student affairs and services to students may include expenses such as:
- activities as deans of students
- admissions
- registrar
- counseling and placement services
- student advisers
- student health and infirmary services
- catalogs
- commencements and convocations
Facilities and administrative cost rates FY 2020-2027
Facilities and administrative cost rates have been established for the period of July 1, 2019 through June 30, 2027. Please use these rates on proposals as appropriate based on the rate effective at the start of the proposal year.
Note: All rates effective July 1, 2019 through June 30, 2023 received an extension to June 30, 2027. Any agreements already in place prior to July 1, 2019 will utilize their current rates through the remainder of the project or the current competing segment.
| Rates Applicable To | 7/1/2017 - 6/30/2019 | 7/1/2019 - 6/30/2027 or Until Amended |
|---|---|---|
| Organized Research - On Campus | 57.5% | 58.5% |
| Organized Research - Off Campus | 26% | 26% |
| Instruction - On Campus | 47.5% | 46.5% |
| Instruction - Off Campus | 26% | 26% |
| Other Sponsored Agreements (service) - On Campus | 32% | 32% |
| Other Sponsored Agreements (service) - Off Campus | 26% | 26% |
Rates for Retirement and Fringe Benefits
Effective July 1, 2025
Use these rates on all proposals. These are pooled benefits and all persons are charge based upon object codes and not on benefit entitlement.
| Group | Description | Object Codes | RATE |
|---|---|---|---|
| A |
|
| 36.33% |
| B | Summer session salary for 10 month appointees | 2010 | 26.82% |
| C | Professional Exempt & Non-Exempt | 2400, 2405, 2408, 2480, 2488 | 37.79% |
| D | Non-exempt staff | 2500, 2504 | 39.95% |
| E | Hourly non-student appointees in positions requiring more than 900 annual hours of work (includes PERF retirement plan) | 3050, 3100, 3200, 3205, 3210 | 18.84% |
| F | Hourly non-student appointees in positions with less than 900 annual hours of work | 2300-2310, 2333-34, 2342-44, 2362-64, 2392-94, 3000, 3150, 3250 | 6.68% |
| G | Supplemental payments for those doing internal consulting | 4580, 4588 | 6.68% |
| H | Qualified graduate student employees (Appointed at 37.5% or more for at least one full semester, and taking at least 6 credit hours); or qualified fellowship recipients | N/A | 1, 2 (See Additional Rates below) |
| I | Student | 2331-32, 2340-41, 2350-61, 2370-91 | 0% |
| Group | Retirement | FICA | Other Fringe Benefits | Total |
|---|---|---|---|---|
| A | 9.51% | 6.68% | 20.14% | 36.33% |
| B | N/A | 6.68% | 20.14% | 26.82% |
| C | 9.51% | 6.68% | 21.60% | 37.79% |
| D | 12.16% | 6.68% | 21.11% | 39.95% |
| E | 12.16% | 6.68% | N/A | 18.84% |
| F | N/A | 6.68% | N/A | 6.68% |
| G | N/A | 6.68% | N/A | 6.68% |
Additional rates
| Fall 2024 Aug 1 - Dec 31 | Spring 2025 Jan 1 - July 31 | Total |
|---|---|---|
| $1,851 | $2,565 | $4,416 |
2Group H: Graduate Student Fee Remissions
Budget graduate student fee remissions in accordance with University Policy SPA-11-010, "Payments and Fee Remissions to Graduate Students on Sponsored Programs".
Indiana University Operating Budget - Employee Benefit Calculation Percentages
Additional rates are available from the University Budget Office 2025-26 Operating Budget Employee Benefit Calculation Percentages document.
Lab Animal Resources Per Diem Rates
- School of Medicine
- Bloomington
- School of Science
Contact: Chris Konz
IUI School of Science, LD222
ckkonz@iu.edu
(317) 274-2870
Lodging and Per Diem Rates
Lodging is reimbursed at actual cost and Per Diem at the rates used by the federal government. Rates vary based on destination. When the city is unknown, it is suggested that you budget Per Diem at $64 for domestic travel to most large cities.
Calculating F & A costs for your proposal
Base is modified total direct costs (MTDC), consisting of all salaries and wages, fringe benefits, materials, supplies, services, travel, and sub-grants and subcontracts up to the first $25,000 of each sub-grant or subcontract (regardless of the period covered by the sub-grant or subcontract). Modified total direct costs shall exclude equipment, capital expenditures, charges for patient care, tuition remission, rental costs of off-site facilities, scholarships, fellowships, and participant support costs, as well as the portion of each sub-grant or subcontract in excess of $25,000.
The Central Indirect Cost Recovery (ICR) Allocation Formula
Updated July 1, 2024
- In most cases, IU currently receives 58.5 cents in indirect cost recovery (ICR) on top of every $1 it receives in federal grants. That ICR is intended to be used to help pay for the cost of research infrastructure not otherwise covered by grants. Unlike most other universities, prior to July 1, 2023 IU returned the vast majority of ICR directly to schools, retaining centrally only 5 cents of each 58.5 cents received in ICR (about 9% of ICR) to help cover a small portion of research infrastructure.
- Starting July 1, 2023, IU retained centrally 30% of ICR, but only from grants awarded or renewed on or after July 1, 2023 (“applicable grants”), whatever the amount of ICR received. The 30% retained centrally was split with 65% allocated to IU Research and 35% allocated to University IT Services. For grants received prior to this date, IU continued to retain centrally 5 cents of the ICR received on each dollar of grants to IU. Starting July 1, 2024, the 30% retained centrally will now be split with 76% allocated to IU Research and 24% allocated to University IT Services.
- NOTE: All awards transferred from other institutions will be considered to be new awards as of the date of the Notice of Award (NOA) or fully executed agreement, whichever applies, for the purposes of this new Central ICR allocation formula.
- ICR retained centrally is used to help cover research infrastructure. What specifically is covered by IU Research depends on the amount of funds available and the urgency of specific needs. Funds allocated to University IT Services are used to maintain, upgrade and support Research Technologies capacity.
- IU Research plans to use its portion of the retained ICR funds to address needs in the following areas:
- Mission critical research infrastructure and personnel including in pre- and post-awards, compliance, research development, and innovation and commercialization.
- Research and animal space renovations and improvements;
- Research infrastructure and equipment;
- University-wide labs, cores and core services, and centers/institutes;
- Start-up and retention packages for faculty;
- Big initiatives and opportunities aligned with the IU 2030 Strategic Plan;
- (Required) Cost-matching on external grants and contracts;
- At least two schools have a financial commitment to finance debt with ICR and until or unless that is shifted to another source of funding, IU will contribute proportionately from its pool of retained ICR from those schools to the cost of debt service.
- The determination of how retained ICR is used will be made by the Vice President for Research, in consultation with the Provost, Chancellor, and deans, subject to an overall allocation plan approved by the Executive Vice President for Finance and Administration.
- IU Research plans to use its portion of the retained ICR funds to address needs in the following areas:
- Of the remaining 70% of ICR from applicable grants, IU will distribute:
- 10% of the ICR from their grants to the research accounts of the PI(s), subject to applicable policies on individual research account balances;
- 10% of the ICR from their grants to the department(s) of the PI(s); and
- 50% of the ICR, plus any ICR that exceeds the limits for PIs, to the originating schools/centers in accordance with any existing or new policies or MOUs between the center(s) and the school(s).
- Exceptions to the distribution of the remaining 70% from applicable grants will be granted with the approval of the dean (and center director if applicable), Provost or Chancellor (if applicable), and Vice President for Research.
- The Vice President for Research will report regularly to the President, Provost, Chancellor, and deans concerning the ICR collected and how it is disbursed under this new Central ICR allocation formula. Deans will also be expected to account annually for their use of ICR.
Indirect Cost Recovery (ICR) Allocation Formula for IU’s Centrally Administered Centers, Institutes, Museums and Service Centers (CIMS)
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:
- 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.
- 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.
- 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.
- Indirect Cost Recovery (ICR) for centrally administered CIMS will be as follows:
- Interdisciplinary centrally administered research Center/Institutes
- 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.
- Centrally administered Core Services and Facilities
- 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.
- Centrally administered Museums
- ICRs for Museums will be split 30% to University Administration and 70% to Museum.
- Centrally administered State-Serving Research Centers
- ICR for State-Serving Research Centers will be split 30% to University Administration and 70% to State-Serving Research Center.
- Interdisciplinary centrally administered research Center/Institutes
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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:
- IU’s policy for the Establishment of Centers and Institutes (RP-11-002)
- IU’s current list of centrally administered CIMS reporting to IU Research*** –
Centrally Administered Centers, Institutes, Museums and Service Centers (CIMS)
Approval:
Approved by Russell J. Mumper, PhD, vice president for research, IU Research, 12/11/2023
Contact Proposal & Award Services for help
All Campuses:
- Email: ora@iu.edu