Distribution of Indirect Costs

Allocation of Indirect Costs - Provost's Model

Acronyms:

• IDC – Indirect Costs
• AAPO – Academic Affairs, Provost’s Office
• OGSR – Office of Graduate Studies and Research
• PI – Principal Investigator

Background:

According to the current CSUSM Corporation Policy on the Allocation of Facilities and Administrative Costs (Indirect Costs), IDCs resulting from grants and contracts (henceforth referred to as grants) to the university are distributed in two allocations, the first is to CSUSM Corporation (the Sponsored Projects Administration costs), and the second according to a model determined by the Provost (as designated by the President). This model details the current method by which the Provost’s allocation is made.

Provost's Model:

In accordance with the current CSUSM Corporation policy, the amount of IDC funds available for distribution in Academic Affairs is the total amount of IDC funds, minus the CSUSM Corporation Sponsored Projects Administration costs. The CSUSM Corporation Sponsored Projects Administration costs are a certain percentage of the total IDCs. The percentage funded IDC on some grants meets or exceeds the CSUSM Corporation percentage from the previous year, and these are regarded as “excess IDC” grants. Where the IDC percentage is less than the CSUSM Corporation percentage, these are regarded as “loss IDC” grants.

A.  Excess IDC Grants

Grants where the IDC rate is at or above the previous year's effective CSUSM Corporation cost rate

1. Institutional Grants (Grants secured at College Dean’s Level, or the Provost’s Level, or by Centers/Institutes, or by other Units outside of Academic Affairs)
   The distribution will be as follows: 40% to the Unit, 40% to OGSR, and 20% to AAPO.
2. Grants secured by individual PIs (or groups of PIs)
   The distribution will be as follows: 10% to the PI, 10% to the PI’s home Department, 35% to OGSR, 30% to the College, and 15% to AAPO. (Where there is more than one PI, the split among the PIs, departments, and colleges, will be determined by negotiation among the relevant parties at the time of grant submission.)

B.  Loss IDC grants 

Grants where the IDC rate is below the previous year's effective CSUSM Corporation cost rate

1. Institutional Grants
   Loss grants approved as institutional grants will be sponsored by the University. CSUSM Corporation administrative costs will be covered by the University. Mechanisms for approval may vary depending on available resources and must be documented by the appropriate vice president or designee. 
2. All Other Grants
   Loss will be funded by the unit/division.  The unit/division's total excess IDC will be reduced by amount of the loss. Unfunded losses will be paid by another source of funds.

Further Agreements:

The PI will have the option to propose to the funding agency assigned-­‐time courses at a rate equal to the average of the standard university replacement rate and the actual full faculty salary rate, or at full faculty salary rate.

For grants in which course assigned time is proposed at full faculty salary rate, the Provost agrees to match one assigned-­‐time 3-­‐unit course for each four assigned-­‐time 3-­‐unit courses received.

This policy applies only to new grants or grant renewals. Continuing grants are subject to the policy in place at the time of the award.