University of Vermont

Sponsored Project Administration - SPA

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IBB and Indirect Costs Algorithm

F&A Allocation Query

To obtain data on the allocation of F&A, run this PeopelSoft Query for the relevant fiscal years and months.

UV_GM_F_A_BY_RS

Incentive Based Budgeting (IBB): Research and Indirect Cost Recovery Algorithm

IBB Algorithm

The IBB algorithm 4a is about the distribution of F&A revenue. The critical components of the algorithm are as follows:

  • The bulk of F&A or indirect cost revenue will be distributed to responsibility centers

  • This will predominantly based on the proposed effort of the Principal Investigators (PI) and Co-Principal Investigators (Co-PI).

  • Effective, January 15, 2017 cross-college agreements outside the normal F&A splits specified in the IBB formula can drive the F&A distribution.

  • These agreements will need to be documented and agreed upon by the appropriate Deans.

  • A smaller portion of the F&A revenue, that which is not distributed to the responsibility centers, will be distributed to the Office of the Vice President for Research for the purposes of incentivizing research and sponsored activities.

Additional Resources

FAQs

Please check back often for updates to this section.

Q. How and where is the F&A allocation tracked? How will it be distributed?

A. The F&A allocation information will be tracked at the department level for reporting purposes. This information will initially be captured in the SPA Routing Packet at the time of proposal development and can be reviewed during the routing process. The information will also be tracked in InfoEd (for proposals and awards) and PeopleSoft (for awards only). FAB will transfer the F&A revenue to units at the responsibility center level.

Q. For projects with more than one PI, a PI leadership plan is required; where will this document be saved for review during the route?

A. When required, the PI Leadership Plan is saved in InfoEd as a stand-alone document. If the plan must also be submitted to the sponsor, then it may also be part of the final proposal document.  This plan will be reviewed by the project’s Co-PIs and the respective Department Chairs and Deans during the routing process, prior to proposal submission.

Q. Beginning in FY16, the bulk of F&A or indirect cost revenue will be distributed to responsibility centers based on the proposed effort of the PI and Co-PI.  Can this split be negotiated?

A. The algorithm is being implemented as described in the final IBB report, based on the work of the IBB Steering Committee and Subcommittees. SPA will consistently track the split in InfoEd and PeopleSoft based on proposed effort.  

In proposals involving cross college resources, it may be appropriate for Deans to negotiate a split of F&A that is different from what is outlined in the final report. Effective, January 15, 2017, these agreements will be uploaded to InfoEd and the agreement upon split will be captured by SPA in InfoEd and PeopleSoft.

Q. What is the best time to decide and agree on the F&A splits that are different from the formula driven methodology?

A. The agreements for the non-formulaic F&A splits should be reached shortly after the roles and responsibilities of the project personnel are clarified. And should ideally happen before proposal submission. In rare circumstances where an agreement cannot be reached before the submission, the PI or the Dean’s office will let SPA know about any such agreements before the award is set up in PeopleSoft.

Q. How will F&A allocation be calculated for a proposal with multiple projects and multiple years?

A. F&A allocation percentages will be prorated based on the proposed effort of all project personnel with the role of PI or Co-PI across all years of the award.

allocation_exampleExample

Q. How will F&A be calculated for center grants that have pilot projects or sub projects, where the project personnel may not be known during proposal development and may change over the award period?

A. Most pilot projects or sub projects are created during the course of the award and are not typically known at the time of proposal. The F&A will therefore be allocated to the PI’s unit that is supporting the overall project work as identified at the time of proposal.

Q. What is the best time to decide and agree on the roles and responsibilities of the key personnel working on the grant?

A. The time to assign the roles of the project personnel is while defining and developing the project plan and scope of work. Depending on how the work is to proceed, the roles and required effort of the PI and the collaborating faculty typically become clear.

Q. What is SPA’s role in determining the roles of project personnel and facilitating discussion during the route?

A. SPA uses algorithm 4a to calculate the F&A allocation. During the route, SPA will act as facilitators for discussions among project personnel, chairs, and deans related to roles. SPA does not play a role during F&A negotiations outside of the IBB formula. Please refer to the previous FAQs about separate tracking and project personnel roles.

Q. What happens if an agreement on non-formulaic F&A allocation is not reached before proposal submission?

A. In case an agreement on F&A allocation is not reached at the time of proposal submission, any subsequent allocation agreement is to be communicated to SPA before award set up. The person accepting the award from SPA will contact the PI and Business Unit Administrator at the time of award receipt.  This will be the time for the units to finalize discussions on F&A allocation and communicating the final agreement to SPA.

Q. What is SPA’s role in determining the F&A allocation and facilitating discussion during the route?

A. SPA uses algorithm 4a to calculate the F&A allocation. During the route, SPA will act as facilitators for discussions among project personnel, chairs, and deans related to roles. Please refer to the previous FAQs about separate tracking and project personnel roles.

Q. What is the expectation of chair and dean approval during the route?

A. Chair and dean approval during route indicates review and approval of all components of a proposal, including the F&A revenue allocation.

Q. Will the F&A allocation change if a continuation is awarded on an existing project?

A. No. Barring extenuating circumstances, the F&A allocation will be determined at the time of proposal and continue during the award period.

Q. What are the extenuating circumstances in which the F&A allocation may change during the life of the award?

A. Some examples of extenuating circumstances are: a PI or a Co-PI leaving the university, a change in PI during the project period, and a scope of work change that requires additional Co-PIs.

Q. Will a change to the F&A allocation be made for project supplements?

A. No. Barring extenuating circumstances, the F&A allocation will be decided at the time of initial proposal.

Q. How was the F&A allocation captured for awards that were active before FY16?

A. The F&A allocation for all existing awards was calculated based on PI / Co-PI effort, consistent with algorithm 4a.

Q. What are the departments that roll up under the OVPR?

A. The following table has the department code and name of the departments under the OVPR

Dept Code    Department name
30010            EPSCoR
30012            Vermont Genetics
30014            Transportation Research Center
30660            Vermont Advanced Computing Center
30640            Animal Care Management
Q. How do we access the data on F&A allocation?

A. The query UV_GM_F_A_BY_RS should be run for the relevant fiscal years and the months. It returns the fields indicated below. If you have any questions on the data returned by the query, please contact Sudha Ramaswami, Director of SPA, at Sudha.Ramaswami@uvm.edu.

ibb_query

Q: What is unrecovered F&A and does it get charged back to the responsibility centers?

A: UVM sometimes accepts sponsored projects with a reduced F&A rate, if the sponsor limits the amount of F&A it will pay. In some cases, these unrecovered (waived) F&A is considered cost share and is used to meet the University's contribution toward the total project costs. Under Algorithm 4, waived or cost shared F&A will not be net against actual F&A revenue that is recovered by UVM and will not reduce the revenue to Responsibility Centers.

Last modified December 21 2016 10:14 AM

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