Keyword Search
Finance and Administration 〉 Finance 〉 Revenues Allocated and Budgeted 〉 Indirect Cost Recovery (including carryforward rules and procedures)

Indirect Cost Recovery (including carryforward rules and procedures)


    Policy Statement
    It is the policy of the University to provide for the full recovery of facilities and administrative costs in all proposals submitted to prospective sponsors. In order to comply with Board of Regents accounting requirements, indirect cost recovery funds must be budgeted and expended in a unique operation within the existing university account structure.
    Reason for policy

    This policy provides guidance for the establishment of budgets for indirect cost accounts.

    Procedures

    In order to satisfy accounting requirements developed by the Board of Regents in response to

    Senate Bill 73, indirect cost recovery funds must be budgeted and expended in a unique

    operation within the existing UGA account structure.  Operation “A” has been established for

    indirect cost recovery accounts, with operation “B” for cost-sharing accounts.

    1. Allocation of indirect cost recovery to originating units – Resident Instruction.

    Each unit receiving an allocation for indirect cost return (IDC) will be required to establish

    operation “A” and/or “B” account numbers for their respective unit. When completing the

    Request for Account Addition/Change form, the following special instructions apply to IDC

    accounts:

    1. Line 6 Funding Source -- Enter “Indirect Cost Recovery”.

    2. Line 10b Description and Purpose -- Enter “Allocation of indirect cost recovery to

    originating unit”.

    When preparing the budget amendment to budget indirect cost recovery allocations, offset the

    allocation of overhead return to account 1026AR65000071000. This account should appear in

    the budget amendment section of the form and will not have a current budget amount.

    Operation “A” and “B” accounts may not be offset by general contingency account numbers.

    Units will have the option to carry-forward up to 5% of their IDC allocation by submitting a

    written plan to their respective dean or vice president for approval. If a unit wishes to carryforward

    funds in an amount that exceeds 5% of their allocation, the unit must submit its plan,

    along with the appropriate justification to their respective dean or vice president.  These

    requests will also be reviewed by the Provost and Vice President for Finance &

    Administration for their approval.

     

    2. Commitments from the Office of the Vice President for Research funded from indirect

    cost recovery.

    OVPR will work with units to transfer indirect cost recovery funds committed by OVPR to an

    appropriate account. OVPR will submit the budget amendment for the original allocation and

    will budget the entire allocation in object 71000. The unit receiving the funds should re-budget

    to the correct objects of expenditure (including personal services). Subsequent personnel

    reports and budget amendments should not flow through OVPR. The unit receiving the funds

    will be responsible for all aspects of account management, including status statements for each

    account, as well as any deficit that may be present at year-end. Any unexpended balance at

    year-end will revert to OVPR for re-allocation in the subsequent fiscal year. Cost Sharing

    accounts funded from indirect cost recovery funds should be set up in the same department as

    the sponsored account with operation “B”.

    Forms/Instructions
    There are no forms associated with this policy.
    Additional contacts

    Policy Contact:  University Budget Office

    Phone Number: 706-542-2802

    Email:  budgets@uga.edu

    Policy definitions
    Indirect costs: Indirect costs, or facilities and administrative costs are institutional costs which are not readily identifiable with a particular project or activity but which are necessary to the general operation of the institution and to the conduct of each of the activities performed. Facilities and administrative cost rates are determined in accordance with cost principles promulgated by the federal government.
    Responsibilities

    Responsible University Senior Administrator:  Vice President for Finance & Administration

    Responsible University Administrator: Senior Associate Vice President for Finance & Administration

    Policy Owner: Budget Division

    Policy Contact:  University Budget Office

    Phone Number: 706-542-2802

    Email:  budgets@uga.edu

    Record Retention

    Description:  This series includes: operating budget expense by categories and functions report; estimated gifts, grants, contracts and clearing account summary report; student fee income and application of funds report; statewide public service source and application of funds; other reports specified by the Chancellor's Office; and institutional budget preparation instructions.

    Retention:  Annual operating budget: PERMANENT; All other records: 7 years.

    Policy Appendices

    There are no appendices associated with this policy.

    FAQs

    There are no FAQs associated with this policy.

    There is no related information for Indirect Cost Recovery.