Policies & Regulations
Academic Affairs: Research & Sponsored Programs
| Use of Recovered Facilities and Administrative (F&A) Costs (Indirect Costs) |
| Number: | 2.0031P | 
New Policy 
Major Revision of Existing Policy
Minor/Technical Revision of Existing Policy
Reaffirmation of Existing Policy |
| Effective Date: | 07/1/2007 |
| Revised Date: | |
Responsible Division/Department:
Provost and Vice President for Academic Affairs |
I. OBJECTIVE & PURPOSE
This policy establishes the allocation and distribution of recovered Facilities and Administrative (F & A) costs (also referred to as Indirect Costs) at the University of North Florida. Funds recovered from Facilities and Administrative Costs at the University of North Florida will be used in accordance with the provisions of Section 1004.22 (5) of the Florida Statutes, which states inter alia that “Moneys received for overhead or indirect costs and other moneys not required for the payment of direct costs shall be applied to the cost of operating the division of sponsored research. Any surplus moneys shall be used to support other research or sponsored training programs in any area of the university.”
II. STATEMENT OF POLICY
It is the policy of the University, consistent with the provisions of Florida Statute 1004.22(5), to use recovered F&A costs to cover, in the first place, the costs of sponsored project administration and research-related infrastructure. It is also the policy of the University to use available funds from recovered F&A costs to support and stimulate further research directed at increasing external sponsorship of research, training and community service. The authority and responsibility for administration and implementation of this policy is delegated to the Assistant Vice President for Research.
III. ALLOCATION OF RECOVERED F&A COSTS
A. F&A costs recovered from all externally funded grants, contracts and other agreements with a total award of $10,000* and above, except those involving university centers#, will be allocated as follows:
1. 60% will be allocated to cover federally- and state-mandated facilities and administrative costs in support of sponsored projects at the University. All the grant and contract (C&G) functions of the Office of Research and Sponsored Programs (ORSP) and a contingency fund for disallowances shall be funded from this allocation.
2. 18% will be allocated to support research in the College(s)/Division of the principal investigator(s) who generated the F&A costs.
3. 10% will be allocated to the research activities of the principal investigator(s) who generated the F&A costs.
4. 5% will be allocated to support the Lambda Rail
5. 5% will be allocated to the Research Reserve account for the support of research development initiaitves and intellectual property development.
6. 2% will be allocated to the Library for research-related support.
*ORSP will retain all F&A costs recovered for all awards less than $10,000.
B. F&A costs recovered from each sponsored project with a total award of $10,000* and above, involving university centers# (but not State of Florida Centers), will be allocated as follows:
1. 55% will be allocated to cover federally- and state-mandated facilities and administrative costs in support of sponsored projects at the University. All the grant and contract (C&G) functions of the Office of Research and Sponsored Programs (ORSP) and a contingency fund for disallowances shall be funded from this allocation.
2. 15% will be allocated to support research in the College(s)/Division(s) of the principal investigator(s) who generated the F&A costs.
3. 10% will be allocated to support the research and administrative functions of the university center
4. 10% will be allocated to the research activites of the principal investigator(s) who generated the F&A costs.
5. 5% will be allocated to the Lambda Rail.
6. 5% will be allocated to the Research Reserve account in support of research development initiatives.
*ORSP will retain all F&A costs recovered for all awards less than $10,000.
# University Center is defined in the Unviersity of North Florida Guidelines for Establishing, Evaluating/Reviewing, and Disbanding University Research Centers and Institutes, consistent with PG 04.07.27 of the Florida State University System.
C. F&A costs recovered from all externally funded grants, contracts and other agreements that require cost-sharing will be determined by ORSP and may include allocations to the research and administrative functions in contributing units as appropriate.
IV. DISTRIBUTION OF RECOVERED F&A COSTS
Recovered F&A costs will be distributed to ORSP, Administration and Finance (for the Lambda Rail), College/Division Research Development Funds and Principal Investigator Individual Research Development (IRD) Funds established for this purpose in the (Banner) Accounting system. Amounts allocated to Principal Investigators will be proportional to the “Percent of Credit” stated on the Internal Routing Form for Proposals, Agreements and/or Awards. In accordance with Florida Statutes 1004.22(5) these funds must be used to support research and other sponsored project activities. This includes administrative support for existing sponsored projects or expenses related to the development of new projects. Other allowable expenses, by account category, include but are not limited to the following:
Summer salary for faculty for research effort
Supplemental compensation for faculty for research effort
Student or OPS wages to assist with research and administrative support of sponsored projects
Travel related to professional development or research development
Equipment for research
Memberships and subscriptions
Publication charges
Research-related supplies
The use of recovered F&A costs for expenses other than those listed above require the review and recommendation of the Director, Office of Research and Sponsored Programs, and the approval of the Assistant Vice President for Research.
