Indirect Costs Incentive Fund

Purpose and Eligibility

The Indirect Costs Incentive Fund provides funds to faculty and departments equal to a set percentage of indirect costs recovered from full indirect cost-bearing sponsored program awards. The amount returned is directly related to the amount of indirect costs recovered. All faculty (and their related departments) receiving awards from external sponsors on which indirect costs are recovered are eligible to participate.

Distribution of Recovery

Note that indirect costs at the allowed or negotiated rate are recovered by the University only as expenditures on sponsored programs are incurred.

Only those awards on which full indirect costs are being recovered at the University's currently negotiated indirect cost rate will be eligible for distribution of indirect cost return to the principal investigator and department (note: an exception can be made for continuation awards that were originally negotiated at a prior, lower indirect cost rate).

Awards on which the University has agreed to cost share such expenditures as equipment, tuition, etc., as well as educational and other awards recovering a capped rate only (e.g., 8% rate for training grants) will not be eligible for a distribution.

Each quarter, Research Accounting will distribute a portion of the indirect cost recovery for the preceding quarter, as follows1:

  • 10% of amounts recovered are returned to the principal investigator
  • 5% of amounts recovered are returned to the principal investigator's department

Funds distributed under this initiative may be spent by principal investigators and departments for any valid research-related purpose.

1Percentages effective February 2006

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Questions regarding the Indirect Costs Incentive Fund may be addressed to the Research Accounting Office by calling extension 5422.