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GSLIS Policy on the Distribution of ICR

What is ICR?

ICR stands for Indirect Cost Recovery. ICR is added to certain categories of expenditures in some grant proposals: federal grants generally permit ICR to be charged at a rate of 53% (that's a negotiated rate specific to UIUC) on allowable categories of expenditures. Some private foundations have a policy of not paying ICR at all--but in these cases, you can usually charge some of the things that normally justify ICR as direct costs of the project, instead.

ICR distribution at the University and Campus level

The current University policy for the distribution of grant ICR monies is that the University retains 8% of the ICR funds and distributes 92% to the Campus. Campus automatically passes on 30% of ICR funds to GSLIS, and may pass on more, depending on whether ICR for the previous year was higher than, lower than, or the same as the year before that. If there's a change, then 62% of that change is passed on to, or deducted from, our budget.

So for example, if someone writes a grant for $100,000 and 50% of that (or $50,000) is ICR, the university keeps 8% of that $50,000, or $4,000, and GSLIS receives 30% of the $50,000, or $15,000 -- but note: we receive these funds incrementally, as the grant funds are actually spent. If only half the grant funds are actually spent in a given fiscal year, then we receive only 15% of our eventual 30% share, or $7,500. Now, in the next fiscal year, we may receive an additional ICR increment to our budget, up to the remaining 62% of that $50,000, or $31,000, but only if our ICR in the previous fiscal year, as actually paid out, increased over the year before. If we do receive this increment, it comes as a lump sum added to our annual budget, and it is not tied to particular grants.

This means that:

a) we can only track 30% of the ICR reliably to particular grants, to begin with, because we see that accumulate as money is spent out of particular grants, and

b) it is very important for all grants to spend out their funds on schedule: no-cost extensions hurt everyone, because they have a negative impact on our total ICR for the year.

ICR distribution within GSLIS

When GSLIS receives its 30% of ICR monies from a grant it will assess what liens, if any, for graduate assistant tuition and what "first call" (e.g., campus charges including space or administration) charges are placed upon the grant. After these charges have been subtracted from the ICR funds, GSLIS will distribute 100% of the net ICR funds from the grant as follows:

70% for administrative costs including administrative infrastructure and space. Costs include but are not limited to management of accounts, campus and other reporting and compliance, O&M charges, special infrastructure, or space requirements including set up costs. Funds are also used to cover all of the aforementioned expenses for those grants that do not generate ICR, e.g. Mellon grants. In addition, funds are used to cover general operating expenses.

15% for seed money for institutional research that might lead to future grants, or simply for small research grants in areas where external funding is scarce. Distribution of these funds is governed by "ICR Grants" (below).

15% to the PI to use as is appropriate. Funds are to be used to compensate for the PI's time on the grant. These monies may be used for, but not limited to graduate hourly support, software, and equipment. All expenses must support either the project or the primary assignment of the PI. All purchases remain the property of the University.

In years when the ICR change from the previous year is positive, and GSLIS receives additional funds (up to 62% of the previous year's ICR), an amount equal to the 15% made available to the PI will be added to the PI account, subject to the availability of funds in the ICR increment, and on the condition that the project is on schedule with respect to its plan of work and its budgeted expenditures. Increments for the final year of a project will be added in the following fiscal year, subject to the same conditions.

Each year, an annual accounting of the use of the ICR funds from each grant will be provided to the Dean.

What this means, in practice

If you win a $100,000 grant in FY2004 and of that, $40,000 is ICR, $12,000 is the net transferred to GSLIS, assuming you spend $100,000 during FY2004. Of that $12,000, 75% ($9,000) goes to GSLIS for administrative costs, 15% ($1,800) goes to the seed grant program, and 15% ($1,800) goes to the PI, to be spent in connection with the grant or the primary assignment of the PI. If the grant is on schedule and the total ICR for GSLIS at the end of FY2004 is higher than it was in FY2003, then in FY2005 (subject to the availability of funds from the ICR increment) another $1,800 would be added to the PI's account.

Seed Grants

To encourage research, GSLIS commits a portion of the ICR it receives to fund seed grants that create opportunities for new research. Potential applicants should also explore other UIUC funding opportunities, such as the Research Board, as appropriate. GSLIS seed grants are intended to either complete or start a research project. The deliverable, within a year of the grant, will be either a completed piece of research (published or submitted for publication) or a grant proposal for additional research funding from sources outside of the UIUC campus.

Faculty (core or supplemental) and research scientists in the Graduate School of Library and Information Science may submit seed grant proposals. The Executive Committee will serve as the review committee for all applications and will make its recommendations to the Dean. Executive Committee members who submit a proposal will recuse themselves from the entire selection process. As part of its evaluation and recommendation, the Executive Committee will provide a brief critique of each application based within the context of GSLIS's overarching goals. This evaluation will be made available to the applicant. Decisions of the Dean are final, but proposals may be revised and resubmitted in subsequent cycles.

Applications should include a brief narrative of the proposed project, including objective and design, and a budget. Where the proposal is for planning or pilot activities, applicants should indicate likely funding sources for the larger project. Where the proposal is for one-time research funds, applicants should indicate the intended outcomes (for example, which journals would be likely to publish results from the project). The application should be no more than three pages. Applications are to be submitted to the Dean's Office by March 15 of each year.

Each year, by April 15, two grants will normally be awarded, and grants will normally not exceed $6,000. Funds may be used to employ graduate hourly students (but not to create graduate assistantships), to pay for equipment or travel, to provide summer salary for a 9-month faculty member, or for any other purpose that advances the research enterprise.

These policies will be reviewed by the Executive Committee annually.