If the indirect costs added to the general fund then come back to support things like startup costs for researchers, equipment purchases, seed and bridge funding, research travel, etc., and all of that support is open and transparent to the campus as a whole, fine. Otherwise you’re only reinforcing the mistaken notion that indirects really are a “tax” on researchers that they should avoid paying whenever possible.
Michael Spires, M.A., M.S., CRA
Research Development Officer, Sciences
The Research Office
Oakland University
256 Hannah Hall
244 Meadow Brook Road
Rochester, MI 48309-4451
(248) 370-2207
Past President, National Organization of Research Development Professionals
From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG> On Behalf Of Michael Kusiak
Sent: Monday, May 06, 2019 21:13
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG
Subject: Re: [RESADM-L] Indirect Cost Re-Distrubution
I will proffer a radically different approach: don’t redistribute recovered IDC, put it into your general fund.
If we want to educate our funders, PIs, an fellow administrators about the purpose of indirect cost recovery, we would NOT adopt internal policies that redistribute recovered indirect cost recovery.
The funds we recover are for costs that have already been incurred. Our negotiated rates typically don’t yield the full recovery we actually need to cover these indirect costs because of the cap on administration and the reality that despite applying the costing principles, federal negotiators typically over a rate below our calculations.
Consider reinvesting recovered IDC into your general fund.
Mike
Michael Joseph Kusiak
Research Policy Manager
510-987-0659
Research Policy Analysis and Coordination
University of California, Office of the President
From: Research Administration List <xxxxxx@LISTS.HEALTHRESEARCH.ORG> On Behalf Of Kathy Rushlo
Sent: Monday, May 6, 2019 1:18 PM
To: xxxxxx@LISTS.HEALTHRESEARCH.ORG
Subject: Re: [RESADM-L] Indirect Cost Re-Distrubution
The institution does not set the F&A (indirect) rate. The rate is determined by several factors (as you say) and is negotiated with the federal agency that provides most of your funding.
If you do not have a negotiated rate, generally you use the de minimums rate of 10% on modified, total direct costs (direct costs less equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of each subaward in excess of $25,000). For foundations, etc. that do not specify an F&A rate (and allow F&A), the institution can set the rate. Our institution charges 8% on MTDC.
The distribution of the indirects collected is another issue. We are not a research-intensive institution and do not have tenure in the traditional sense. We do have a research reinvestment policy that rewards faculty willing to do research. The policy applies only to research grants, not program grants (an important distinction).
Kathy
Kathy Rushlo, MHA
Director, Sponsored Programs, Arizona Campus
5835 East Still Circle
Mesa, AZ 85206
480-245-6240
If you focus on results, you will never change. If you focus on change, you will get results.
~Jack Dixon
On Mon, May 6, 2019 at 12:42 PM Portzer, Lori <xxxxxx@lvc.edu> wrote:
My institution does not currently have a Grant office or a Grant Structure in place for Indirect cost Re-Distribution for when external grants are secured. While I am aware the actual rates/percentages are set by the institution and there are multiple factors involved, I wanted to inquire as to what a ballpark percentage would be appropriate to present to the College as a starting point and basis for discussion. We would have the following structure and I appreciate any feedback with slight justification so I may articulate a reasonable, responsible figure to my institution. Thank you!
1. College (at the determination of the Dean)
2. Department of Health Professions (at the determination of the Chair)
3. Principle Investigator
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