Reason For This Procedures Document
To communicate the purpose, distribution and duration of F&A (indirect costs) revenue returns that are provided annually to the Deans, Department Heads and Principal Investigators generated from sponsored research activities.
What Is F&A?
Facilities and Administrative (F&A) costs, also known as indirect costs, are costs associated with sponsored projects that are incurred by the University that cannot be readily identified nor specifically attributed to a particular project, but which support research endeavors. Each year the Office of the Vice President for Research (OVPR) distributes a portion of the indirect costs earned on sponsored research grants and contracts to Principal Investigators (PIs), Department Heads and Deans to invest in and support research programs and initiatives that exhibit the greatest potential to bolster the University of Connecticut’s rise among the nation’s top research Universities. Please note, non-research Sponsored Program F&A is not returned to the OVPR, and is thus not available for distribution to PIs, Department Heads and Deans.
How Is F&A Distributed?
The return of F&A generally occurs in the winter of each year and is based upon the indirect costs collected from research grants and contracts during the preceding fiscal year (July 1‑June 30).
The indirect cost distribution formula is as follows:
The department and dean allocations are distributed according to the faculty’s academic home department regardless of where the grant is managed.
If there are any administrative changes in the grant, the Vice President for Research will make the appropriate determination as to the distribution of the F&A.
F&A returns are deposited into individuals’ unrestricted research accounts (Ledger 4) in Kuali and do not currently expire:
- If a PI leaves the University, the Department Fiscal Officer should contact the OVPR to close the account. See contact information below.
- PI over-expenditures are the responsibility of his/her academic department.
- Departmental over-expenditures are the responsibility of their Dean.
What Is Distribution of Credit?
For grants that include a signed Distribution of Credit at the time of proposal, the proportion of indirect costs is distributed to PIs and Co-PIs, their corresponding academic home department and school/college based on the percentage of distribution listed for each faculty member.
NIH Grant, KFS# 5151510, with total F&A Costs of $20,000 for FY20xx and the Distribution of Credit (DoC) form submitted as follows:
PI/Co-PI Name DoC Academic Home Department
PI: John Smith 50% Pharmacy Practice
Co-PI: Sue White 25% Math
Co-PI: Deb Brown 25% Animal Science
The F&A will be distributed as follows:
PI 10% Department 10% Dean 10%
John Smith-$1,000 Pharmacy Practice-$1,000 School of Pharmacy-$1,000
Sue White-$500 Math-$500 CLAS-$500
Deb Brown-$500 Animal Science-$500 CAHNR-$500
How Can F&A Be Used?
In order for UConn to maximize its success in meeting its research goals, distributed F&A should be used to support UConn’s research enterprise in accordance with existing University policies and procedures. Common uses of these monies include the following:
- Funding for graduate student stipends, travel and other expenses incurred by graduate students while performing research;
- Funding for postdoctoral researchers;
- Research supply/equipment purchases;
- Bridge funding;
- Cost-share, required or voluntary;
- Travel to meet with program directors, present papers, give invited talks, etc.;
- Books, journals, papers and other similar expenses related to scholarship and research;
- Project development costs such as proposal writing, proposal workshops, etc.;
- General administrative and clerical costs (including office supplies) in support of research;
- Research related recruitment costs;
- Laboratory enhancements for research purposes; and
- Faculty start-up packages for research programs.
For additional information on this procedure, please contact Julie Schwager (860-679-7649).