Reasons for Procedures

To communicate the purpose of Indirect Cost Recoveries (IDCs) generated from sponsored activities that are distributed to Principal Investigators.

What Are IDCs?

Indirect Costs (IDCs), also known as Facilities and Administrative (F&A) costs, are costs associated with sponsored projects that are incurred by the University and that cannot be readily identified nor specifically attributed to a particular project, but which support University sponsored activities. The University distributes 5% of the indirect cost recoveries to Principal Investigators (PIs) to support laboratory costs not otherwise allowable or allocable to grants and/or other costs to support the PI’s research and other scholarly activities.

How Are IDCs Distributed?

At the time of sponsored activity proposal submission, the Principal Investigator determines the distribution of the 5% PI IDC allocation among project collaborators, which may include co-investigators and/or other key personnel.  This is referred to as the Distribution of Credit (DOC).

The distribution of IDCs occurs automatically by the University’s accounting system, KFS, on a real-time basis.  As costs are charged to sponsored accounts, the system automatically charges the sponsored account for the appropriate indirect costs and revenue is credited to PI Indirect Cost accounts based on the DOC on record. The reverse happens in the case of costs transferred off a sponsored account.

The Principal Investigator or their administrator are responsible for informing the Office of the Vice President for Research of are any administrative changes in the grant that affect the individual(s) to whom the PI IDC distribution is made, such as a change in the DOC.

PI IDC accounts are unrestricted research accounts (Ledger 4) in KFS and do not currently expire:

• Once the IDC account is created, it is up to the FO / School to manage the owners, balances, activity and status.
• PI over-expenditures are the responsibility of their managing department.

How Can IDCs be Used?

In order for UConn to maximize its success in meeting its research goals, IDCs should be used to support UConn’s research mission in accordance with existing University policies and procedures. Common uses of these funds include:

• Funding for graduate student stipends, travel and other expenses incurred by graduate students while performing research
• Funding for postdoctoral researchers
• Research supply/equipment purchases
• Bridge funding
• Cost-share, required or voluntary
• Travel to meet with program directors, present papers, give invited talks, etc.
• Books, journals, papers and other similar expenses related to scholarship and research
• Project development costs such as proposal writing, proposal workshops, etc.
• General administrative and clerical costs (including office supplies) in support of research
• Research related recruitment costs
• Laboratory enhancements for research purposes

Contact

For additional information on this procedure, please email researchfinance@uconn.edu.

Revised 10/15/2025