Federal Indirect Costs Program How does it work? Federal Indirect Costs Program How does it work? Susan Blum, Ph.D. Director Research Services Associate

Federal Indirect Costs ProgramFederal Indirect Costs Program

How does it work?How does it work?

Susan Blum, Ph.D.

Director Research ServicesAssociate Deans Research Forum

October 24, 2008

Research ServicesResearch Services

What is it?What is it?

Federally funded programDesigned to assist Canadian universities

in offsetting the IC of research resulting from Tri-Council awards

Allocations are made annually on the basis of an institution’s Tri-Council performance.


What is it for?What is it for?

To assist in covering the following expenditures:FacilityManagement and AdministrationResourcesRegulatory Requirements andIntellectual Property


Funds received by the U of SFunds received by the U of S

Fiscal Yr

Federal Allocation

% Increas

e

UofS Allocation

% Increas

e

Additional Fund

Received*2003-04

225,000,000

- 4,483,343 - -

2004-05

245,000,000

8.9 4,845,722 8.1 303,619

2005-06

260,000,000

6.1 5,064,799 4.5 204,691

2006-07

300,000,000

15.4 6,325,538 24.9 716,290

2007-08

330,000,000

10.0 7,148,389 13.0 313,896

2008-09

315,000,000

-4.5 8,142,816 13.9 TBD

Treasury Board FormulaTreasury Board Formula

Indirect Costs Grant for 2008-2009 $8,142,592

Indirect Costs Grant as a percentage of direct costs

25.2%

Three year rolling average $32,353,129

Total Funding (3 previous yrs –next slide)

$97,059,386

Three-year rolling averageThree-year rolling average

Agency 2004-2005 2005-2006 2006-2007 NCE-3 yrs Total

NSERC $19,017,217 $21,269,674 $23,309,479 $1,462,421 $65.058,791

CIHR $8,570,298 $7,530,144 $9,425,280 $700,037 $26,226,759

SSHRC $1,616,700 $1,885,241 $2,000,512 $271,383 $5,773,836

Total $29,204,215 $30,686,059 $34,735,271 $2,434,841 $97,059,386$97,059,386

There is a gap of 1-yr in the formula, i.e., for 2008-2009, 2007-2008 is not used.

Management at U of SManagement at U of SPCIP oversightOVPR manages the IC allocation working

closely with Budget Management IC Advisory Committee

Representatives from Council Committees, Colleges, and campus administrative units

Recommends allocation of funds for research-focused services and initiatives

IC Operational AdministrationIC Operational Administration

Innovations Program Unit, Research Services

Manager, Amit Shukla, Ph.D.Contact 966-2083,

[email protected]


U of S DistributionU of S Distribution

IC funds are distributed among three broad categoriesSustainability (Operating Budget)CLS AllocationNew Initiatives (Research Support)


Split between 3 categories Split between 3 categories

Until 2006-07, IC funds were distributed approx. 50:50 (Sustainability:New Initiatives)

Spring 2007PCIP froze the NI funds at $3.167 million

(which includes the College Priority FundTo provide IC allocation to CLSDue to CLS allocation since 2007-08, the split is

no longer 50:50


Steps to achieve 50:50 splitSteps to achieve 50:50 split

After removing the CLS portion, the New Initiatives portion will stay at $3.167M until Sustainability portion catches up

Research Services – Grants UnitResearch Services – Grants Unit

Sustainability (operating budget)Sustainability (operating budget)

Expenses under this category already existed prior to the inception of the IC program

Funds are used to offset existing operational cost already being incurred by the U of S due to increased Tri-Council research activity

This allocation non-negotiable


Sustainability-examplesSustainability-examples

Operating Costs for Research Space (renovations, heating, electricity, water)

Library ResourcesHuman and Animal Ethics Information & Communication

Technology


CLS AllocationCLS Allocation

CLS is unique because:pays for all infrastructure & administrative services

it receives from the U of SCFI application-IC monies directly attributable to

go to CLSB of G decision-U of S provides all IC funding

attributable to the CLS MFA grant directly to CLS. Need clear & transparent funding strategy for the CLS


New Initiatives (research support)New Initiatives (research support)

Funding used for new initiatives that further the research enterprise and increase research intensiveness at the U of S


New Initiatives - ExamplesNew Initiatives - Examples College specific activities through the College

Priority Fund Internal award programs to support & promote

individual & collaborative research proposals

e.g. Research Acceleration Program (RAP) & Proposal Development Awards

Technology transfer activities Research Environment Enhancement (REE)

initiatives e.g. Landscape document, Research Magazine, etc.


IC Budget over last 3 yrsIC Budget over last 3 yrs

IC Program Totals 2008-2009 2007-2008 2006-2007

Sustainability $2,935,508 $2,739,875 $3,157,927

Sustainability (CLS) $1,727,871 $1,240,902 -

New Initiatives $3,167,610 $3,167,610 $3,167,611

One-time allocation $308,825 - -

Total for fiscal year $8,142,814 $7,148,387 $6,325,538


2008-2009 Distribution (%)2008-2009 Distribution (%)

Sustainability = 36%

(VP Finance & Resources) IC Funds to CLS = 21%

(VP Finance & Resources)New Initiatives = 43%

(VP Research)


2008-2009 Distribution ($$)2008-2009 Distribution ($$)

Sustainability = $2,938,508

(VP Finance & Resources) IC Funds to CLS = $1,727,871

(VP Finance & Resources)New Initiatives = $3,476,435

(VP Research)


New Initiative–Breakdown (%)New Initiative–Breakdown (%)

College Priority Fund = 12% OVPR Administration = 12% Intellectual Property = 7% Strategic Research Fund = 6% Proposal Development Awards for Faculty=3% Research Environment Enhancement = 3%


New Initiative-Breakdown ($$)New Initiative-Breakdown ($$)

College Priority Fund = $923,323 OVPR Administration = $1,168,404 Intellectual Property = $713,026 Strategic Research Fund = $150,000 Proposal Development Awards = $254,834 Res. Environment Enhancement = $266,848


College Priority FundCollege Priority Fund

Total IC funding available over the

last three years has been $923,323 Funds are allocated based on each

College’s percentage in total Tri-Council funding received by the University (based on a three-year rolling average with a gap on one year)


Annual IC Outcomes ReportAnnual IC Outcomes Report

In order to be eligible to receive funding, each institution is required to submit an annual Statement of Account and Outcomes Report

Report should describe how IC funds were used in the previous fiscal year and how the institution is meeting the program's objectives

Research Services Research Services

University ResponsibilityUniversity Responsibility

Funds must be spent in the year in which they were awarded. Unspent balances cannot be transferred to the institution's general research fund or carried forward to the next fiscal year.

Funding is suspended to any institution that does not fulfill this reporting requirement


Unit ResponsibilitiesUnit Responsibilities

At the time the funds are disbursed to the U of S communityeach unit is provided with a list of eligible

and ineligible expensesa specific plan for the allocation of these

funds is determined


Unit Responsibility-2Unit Responsibility-2

Fiscal year end, each units provides an Outcomes Report • Explain expenses incurred according to the plan

under the categories: Facilities, Intellectual Property, Management & Administration, Regulatory Requirements, and Resources

Reports are compiled into a summary report and submitted to the funding agency yearly for end of June


U of S Leads the WayU of S Leads the Way

U of S recognized and commended“Your 39-page supplement is impressive! …

use some of these extra examples in our report to the Minister.” (ICP)

One of the few institutions where IC funding is used on so many diverse initiatives. Most institutions use their IC funds to offset operating cost related to facilities (water, electricity and utilities)


Questions Questions

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Documents

Federal Indirect Costs Program How does it work? Federal Indirect Costs Program How does it work? Susan Blum, Ph.D. Director Research Services Associate