UCD Directives

UC DAVIS:  OFFICE OF THE CHANCELLOR
       OFFICE OF THE PROVOST

July 15, 1999

DEANS, DIRECTORS, DEPARTMENT CHAIRS

SUBJECT: Indirect Cost Return (ICR) Programs

Dear Colleagues:

In March, I announced a series of new programs that allocate indirect cost
funds to campus units (ref: March 10, 1999 letter to CODVC). I am writing now
to provide you with the detailed allocation methodology that will apply to
each program. Allocations for 1999-2000 will be announced by the Office of 
the Vice Chancellor-Research by December 1999.

1. Federal Indirect Cost Return Program. This program was established in 1990
and will continue to operate as it does today. The federal return program
allocates 25 percent of the campus's share of University Opportunity Funds
designated for research to department chairs. Each department's share of the
total return is proportionately related to the total value of the indirect
cost funds attributable to their federal contracts and grants in the prior year.

2. Private Indirect Cost Return Program. This new program allocates 25 percent
of the indirect costs from private contracts and grants that are received by
the campus. Approximately two-thirds of this amount will be allocated directly
to department chairs using a pro-rata distribution based on the total value of
the indirect cost funds attributable to their private grants in the prior year
(similar to the federal indirect cost return program). Department chairs will
be able to use these funds in direct support of faculty research activities or
to offset the costs of departmental administration of contracts and grants.
The balance of the funds will be used by the Office of the Vice Chancellor-Research
to fund three positions that will support the Human Subjects Review Committees.

3. Off-the-Top Return Program. This new program allocates 25 percent of the
campus off-the-top (overhead) fund. These funds will be allocated to the
campusto support the administrative costs associated with extramural contracts 
and grants. The funds will be allocated proportionately based on the components 
of the existing indirect cost rates as described below. 

Rate Component Allocation Average Percent
Department Administration Deans 64%
General Administration Vice Chancellor Hamilton 22%
Sponsored Program Administration Vice Chancellor Smith 8%
Library Librarian Sharrow 4%
Student Services Administration Dean Gonzalez 2%

4. Indirect Cost Block Grant. This new program allocates $500,000 annually to
the Vice Chancellor--Research to augment various research-related programs. In
fiscal year 1999-2000, Vice Chancellor Smith has decided that half of the funds
will be allocated to the Committee on Research to augment research and travel
grant programs. He has also decided to allocate the balance of the funds to
support research-related costs such as computing needs, and interdisciplinary
initiatives. Vice Chancellor Smith will communicate directly with deans
regarding these allocations.

5. Reporting. Each Fall, the Planning and Budget Office prepares an annual
report on the overall sources and uses of all campus indirect cost recovery
funds. The report for 1997-98 is available on the Planning and Budget Office
web page:

	http://www.pbo.ucdavis.edu
	 
The  Office of Research will provide information to each dean detailing the annual
allocations within his or her college. In addition, the Office of Research 
will prepare a report summarizing the allocation of all funds distributed 
through the indirect cost return programs so that the effect of these important 
programs can be reviewed regularly.

Sincerely,
Robert D. Grey
Provost and Executive Vice Chancellor

/dfu

99-083

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