ICR Sharing

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ICR Sharing

• Patricia Homyak and Pamela Webb
• 02.17.2009

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At the end of this session, you will ..

• Understand University ICR sharing policy
• Understand expanded ICR sharing options available
  in EFS
• Know tools that can help you determine which
  basis and method to use
• Understand procedure for obtaining shared ICR
• Understand how your ICR is distributed

ICR Indirect Cost Recovery
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University ICR Sharing Policy

• When may I share ICR with another unit?
• Whenever the involved parties decide it makes
  sense
• When must I share ICR with another unit?
• Two or more colleges are involved
• Total project costs (including direct and FA)
  are more than 100,000 per year
• Each college is entitled to 1000 in FA or more
• Who decides how the ICR will be shared?
• College deans or their designated representatives
• Intercollegiate Center directors (if applicable)
• University-wide Center directors and central
  admin (if applicable)
• PIs may assist (but not decide)
• Disputes are mediated by central admin (SPA or
  OVPR)

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ICR Sharing Policy (continued)

• When will such decisions be reached?
• At time of proposal or, if agreement is not
  complete at that time, at time of account setup
• Can the arrangements be changed later?
• Yes, if the sponsor substantially changes the
  proposal
• Change in key personnel effort
• Change in cost-sharing
• Change in overall budget of 25 or more
• ..or ..
• When all parties agree to a change (not
  specifically stated in policy)
• Administratively, if there is a change mid-budget
  period, SPA will adjust the setup as soon as
  practicable after receipt of the PS-friendly
  budget form (estimated to be within 10 business
  days)
• Changes are expected to be infrequent

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Options for FA Sharing

• Pre-EFS
• Separate budgets (child accounts in CUFS)
• Journal transfers of earned FA between units
  (behind the scenes)
• Post-EFS
• Separate budgets (projects in EFS)
• Percentage split on a single project (based on
  Dept ID)
• ICR is distributed to that dept IDs RRC and may
  be further distributed as determined by that RRC

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Award Setup (most common)
Determine Basis for Allocating ICR Between Two or
More Units
Determine Method for Distributing ICR
Obtain Approvals and Signatures
Submit PS Friendly Budget Information to SPA
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Basis for Sharing ICR
See U Procedure Sharing ICR Among Collaborating
Collegiate Units for guidance

• Project Specific
• Reflects key roles on the project (direct and
  indirect)
• Reflects resources consumed on the project
  (direct and indirect)
• Reflects administrative support needed

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Basis for ICR Sharing

• Objectives may include
• Financial equity (most commonly used)
• Supporting scientific equivalence between
  faculty encouraging junior investigators and/or
  supporting ongoing collaboration
• Supporting administrative infrastructure needs
  (eg. to provide hiring and supervision of staff
  and students monitoring of subawards provision
  of computer or lab resources not directly covered
  in the award)

But should it be?
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ICR Sharing Methods

• Journal Transfers
• Separate Accounts
• One account with Percentage Split method to one
  or more DeptIDs

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Journal Transfers (should not normally be used)

• Pros
• Can be done at the end of the project based upon
  actual activity and expenditures no mid project
  adjustments required
• Low administrative cost to complete transfer
• Cons
• Easy to forget all tracking outside of EFS
  system
• Administrative burden to reconcile and calculate
• Dollars come directly from unit after any
  allocation discounting
• Dollars earned are not credited to unit as part
  of Central budget model
• Budget Office formula and ICR reports will never
  be correct

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Separate Accounts

• Pros
• Best for complicated awards, large dollars, or
  large numbers of units involved
• Easy to understand
• Best when each unit is responsible for their
  portion of the project (ex. Program Project
  Grant)
• Cons
• Makes reconciliation and monitoring, effort,
  reporting and close out more complicated
• More difficult to adjust as project/ scope of
  work, level of effort or role on project changes
• High administrative burden for Depts, SPA and SFR

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Percentage Split 1project, Multiple DeptIds

• Pros
• Efficient
• Very cost effective minimal administrative
  burden
• Modest administrative burden to adjust as
  project/ scope of work, level of effort or role
  on project changes
• Cons
• New, less well understood
• Changes must be proactive and not retroactive
• Needs to be tracked at RRC level
• Extra care needs to be given in interpreting
  total ICR earned

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ICR Distribution screen
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Examples Same Award BudgetDifferent
Objectives/ Methods

• Financial Equity traditional based on salary
• Dept 1 - 43,844 or 69 of FA generated
• Dept 2 - 20,135 or 31 of FA generated
• Financial Equity with Multiple or High
  Subawards
• Dept 1 - 51,148 or 80 of FA generated
• Dept 2 - 12,831 or 20 of FA generated
• Effort
• Dept 1 - 15,995 or 25 of FA generated
• Dept 2 - 47,984 or 75 of FA generated
• Administrative Burden
• Dept 1 - 28,468 or 44 of FA generated
• Dept 2 - 35,511 or 56 of FA generated

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Tracking in EFS

• Shown on NOGA
• Navigation GrantsgtAwardsgtProjectgtProject
  Department Tab
• The section called Department Info indicates
  what of the FA revenue generated from the
  Project is attributed to each DeptId
• Navigation General Ledgergt Review Financial
  Informationgt Ledger
• OR
• UMReports
• Use RRC-Level FA revenue chart string
• (ex. 1026-DeptId-UM003 account 46101)

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EFS ICR Distribution

• FA costing process runs nightly (GM_GMFACS)
• FA expense line generated for each eligible
  direct expense transactions
• One or more corresponding FA revenue lines
  generated for each FA expense line
• ICR is allocated to RRCs using FA Distribution
  information set up on project record plus
  information contained in the FA Offset table
  (also maintained by SPA based on rollup tree in
  GL)
• FA Offset table associates DeptIDs with RRC
  DeptIDs
• Full revenue chart string includes
• Fund 1026 -RRC DeptID Program UM003 Revenue
  Account 460101 CF1 Dept ID earning the FA
  Project earning the FA
• RRC distributes FA as it determines appropriate
• RRCs typically retain at least enough FA to pay
  their share of central cost pools

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