Per the Central Indirect Cost Recovery (ICR) Allocation Formula and beginning July 1, 2023, IU retains centrally 30% of ICR from grants awarded or renewed on or after July 1, 2023 (“applicable grants”), whatever the amount of ICR received. Of the remaining 70% of ICR from applicable grants, IU distributes 10% of the ICR from their grants to the research accounts of the principal investigators (PIs) of the grants or contracts, subject to applicable policies on individual research account balances.
Indirect Cost Recovery Sharing
A. Allowable Expenditures
ICR funds distributed to PIs may be applied to any activity, personnel, or equipment used in the planning or execution of research or creative activity by IU faculty or staff, subject to the financial policies of the university (e.g., qualified business expenses for institutional benefit).
ICR funds may be used to support all routine direct research or creative activity expenditures. In addition, ICR funds may be applied to a range of activities supporting research and creative activity that include, but are not limited to:
PI compensation, including summer salary, course buy-outs, or topping off full-year sabbaticals up to full salary. Time associated with the salary coverage period must be used in the planning, execution or dissemination of research or creative activity. Course buy-outs and full-year sabbatical top offs are subject to relevant unit and campus policies and the approval of a PI’s department chair and dean. In the case of non-tenure track faculty or staff, compensation usage is subject to the approval of the direct supervisor. ICR funds cannot be used to support salary supplements.
Compensation for other research personnel, including undergraduate or graduate student research assistants, professional research staff, administrative staff, or faculty collaborators.
Research equipment and facilities, including purchase of datasets, equipment, service contracts, or equipment maintenance or upgrades, or renovation of space for research or creative activity. As with equipment purchased using grant or contract funds, all equipment purchased with ICR funds remains the sole property of the institution.
Travel in support of the planning, execution, or dissemination of research or creative activity, including travel to collect data, to meet with collaborators or funding agencies, to present results at conferences or other meetings, or to install, present, or perform creative works.
B. Guidelines
ICR distributions to PIs will be made concurrent with the grant or contract budget to allow investigators to use these funds in ways that support the execution of the grant or positions them for their next major grant proposal. Once established, ICR will be distributed to PIs twice per year.
Funds distributed to a PI will remain available for their use in accordance with this Plan until expended or until the PI leaves the institution, to include retirement. When a PI leaves the institution, the funds distributed to the PI will revert to the PI’s dean/school. All ICR funds distributed to a PI will roll over into each subsequent fiscal year until expended. For all ICR accounts greater than $250,000, the PI should submit annually to their dean for approval a brief narrative describing the intended use for the funds and timeline for expenditure. ICR will be considered and accounted for separately from discretionary research funds acquired through hiring, retention, or other negotiations between faculty and administrators.
If annual evaluations of this Plan reveal that PI account balances are increasing year on year or have become excessive, the Provost retains the right to redirect ICR funds to deans/schools or to the general operating budget if, in their estimation, the redirection serves the greater interest of the campus.