Facilities and Administrative Revenue Distribution and Use Policy

F&A Revenue Distribution and Use Policy

Purpose

To establish institutional policy for distributing the Facilities and Administrative (F&A) costs, also known as indirect costs, which are recovered in the course of sponsored project activity (expenditures).

Statement

F&A costs recovered from externally sponsored projects allow the University to invest valuable resources back into the research enterprise to support the activities of its faculty, staff, and students. F&A costs are real costs incurred by the University and as such, shall be used to support research-related activities.

Definitions

Facilities and Administrative (F&A) costs. Uniform Guidance 200.414 Indirect (F&A) costs, Facilities, and administration classification. For major Institutions of Higher Education (IHE) and major nonprofit organizations, indirect (F&A) costs must be classified within two broad categories: "Facilities" and "Administration." "Facilities" is defined as depreciation on buildings, equipment, and capital improvement, interest on debt associated with certain buildings, equipment, and capital improvements, and operations and maintenance expenses. "Administration" is defined as general administration and general expenses such as the director's office, accounting, personnel, and all other types of expenditures not listed specifically under one of the subcategories of "Facilities" (including cross allocations from other pools, where applicable). For nonprofit organizations, library expenses are included in the "Administration" category; for IHEs, they are included in the "Facilities" category.

Sponsored Projects. Sponsored projects are externally funded research, instruction, training, testing, service, or other scholarly activities in which a formal written agreement, i.e., a grant, cooperative agreement, or contract is entered into between the University and the sponsor.

F&A Cost Rate. The amount of F&A to be recovered from the sponsor depends on a number of factors: (1) the rate allowed by the sponsor; (2) the nature of the project (research, training, or other activity); (3) the location of the project (on or off campus). The University applies its full federally-negotiated F&A rates for all sponsored projects unless the sponsor has a written policy, in which case the University will apply the sponsor-approved rate.

Distribution of Recovered F&A Costs

F&A Cost recovery funds collected from sponsors are distributed in accordance with the below allocations, typically on the first of the month.

F&A Revenue Distribution Model*

*Table 1: Distribution model applicable to non-School of Medicine units only. School of Medicine Springfield and Carbondale units follow the distribution as outlined in Tables 2 and 3.

Intended use of F&A cost recovery funds

Vice Chancellor for Research & Graduate Dean — 44% transferred to OVCR overhead account

• General Operational Support
• Cost-Share Commitments
• Research and Creative Activity seed grants
• Faculty Travel
• Support the university-wide research enterprise (equipment, facilities, start-ups, etc.)

Deans and Colleges — 24% transferred to the College overhead account

• Support the research operations underway in their individual units.

Chancellor — 15% transferred to Chancellor overhead account

• 3.4% SIU Library
• 5% Information Technology
• Support the university-wide research enterprise

Office of Sponsored Projects Administration — 6% transferred to OSPA overhead account

• General Operational Support
• Electronic Research Administration System(s)
• Professional Development for OSPA staff
• Annual subscription to funding opportunity databases
• Support of grant-writing workshops, whether internally staffed or provided by external sources

Faculty — 4% transferred to PI overhead account

• Support of research efforts (e.g. conference participation, undergraduate research participation, maintaining individual laboratory research equipment and software, exploring innovative research ideas)

Research Facility Support — 7% transferred to a designated overhead account

• Support major research equipment located in the university research support facilities (the SIU Mass Spectrometry Facility, the SIU NMR Facility, the SIU IMAGE Facility, the BioLaunch Core Facilities, etc.). Funds will be used for: 1) the purchase of instrument maintenance contracts, 2) instrument operational costs, and 3) periodic repair and replacement of major shared equipment used by the research faculty at SIUC
• Support of other research instrumentation

Southern Illinois University — School of Medicine, Springfield Campus
Distribution of Recovered F&A Costs

F&A Cost recovery funds collected from sponsors are distributed in accordance with the below allocations, typically on the first of the month.

F&A Revenue Distribution Model

Intended use of F&A cost recovery funds

Dean and Provost — 60% transferred to SOM overhead account

• General Operational and Facilities Support
• Cost-Share Commitments
• Start Up Commitments
• Support for Graduate Assistants (5%)
• Support of Core Research Instrumentation (5%): repair and replacement of shared equipment used by the research faculty at SOM

Associate Dean for Research — 20% transferred to ADR overhead account

• General Operational and Core Facilities support including the purchase of instrument maintenance contracts, instrument operational costs, and periodic repair/replacement of major shared equipment.
• Electronic Research Administration System(s)
• Professional Development for ADR staff
• Annual subscriptions to funding opportunity databases
• Support of grant-writing workshops, whether internally staffed or provided by external sources
• Support of internal SOM research grant mechanisms
• Research bridge funding, startup commitments

Department/Faculty — 20% transferred to Department overhead account

• Support the research operations underway in their individual departments.
• Support to faculty/PI for research support (4%) (e.g. conference participation, undergraduate research participation, maintaining individual laboratory research equipment and software, exploring innovative research ideas)

Southern Illinois University — School of Medicine, Carbondale campus
Distribution of Recovered F&A Costs

F&A Cost recovery funds collected from sponsors are distributed in accordance with the below allocations, typically on the first of the month.

F&A Revenue Distribution Model

Intended use of F&A cost recovery funds

SIUC campus entities (Chancellor/VCR) – 30% transferred to Chancellor overhead account and 40% transferred to OVCR overhead account

• See above for intended use of funds

Associate Dean for Research – Up to $25,000, 20% transferred to ADR overhead account; after $25,000, 10% transferred to ADR overhead account

• General Operational Support
• Research seed grants
• Research bridge funding
• Support the research operations underway in the departments
• Support of grant-writing workshops, whether internally staffed or provided by external sources
• Support to faculty/PI for research support (e.g. conference participation, undergraduate research participation, maintaining individual laboratory research equipment and software, exploring innovative research ideas)

Department – Up to $25,000, 10% transferred to Department overhead account; after $25,000, 20% transferred to Department overhead account

• Support the research operations underway in their individual departments
• Support to faculty/PI for research support (e.g. conference participation, undergraduate research participation, maintaining individual laboratory research equipment and software, exploring innovative research ideas)