The University of Texas at Arlington

Section 5-1401 Distribution

1. Indirect cost (IDC) recovery from sponsored programs will be distributed after the end of each fiscal year. This distribution will allow for the actual collection of IDC and for an exact determination of the IDC earned.
   
   The distribution will be made to the dean of the college or school to be further distributed according to the formula developed by that unit. Account profiles will be filed, and accounts established within the element of cost for organized research within the 14-7550 Series.
   
   In the event that financial conditions are such that the University will not be able to continue the return of IDC monies, deans will be notified.
   
   
2. The distribution will be as follows:
   
   
   1. 15% Retained by the University to enhance research across the University. A portion will be used as 'seed money' to be distributed by a formula developed by the University Research Committee and the Research Operations Council.
      
      
   2. 35% Returned to the college or school that generated the contract or grant.
      
      
   3. 50% Retained by the University to fund the operating budget as prescribed by law.
      
      
3. To clarify and state exceptions to the above, the following are provided:
   
   
   1. Distribution of IDC funds will be based upon the official rates approved by the Federal Department of Health and Human Services (DHHS). These rates are:
      
      On campus 48% MTDC*
      
      Off campus 26% MTDC*
      
      *MTDC is the Modified Total Direct Cost as defined by DHHS and consists of all salaries and wages, fringe benefits, materials and supplies, services, travel, and subgrants and subcontracts up to $25,000 each. Equipment, capital expenditures, charges for patient care and tuition remissions, rental costs, scholarships and fellowships, as well as that portion of each subgrant and subcontract in excess of $25,000 shall be excluded from MTDC.
      
      
   2. Grant or contract proposals in which IDC rates lower than those approved by DHHS are requested must be approved by the Vice President for Research. Requests are made using the blue routing sheet.
      
      
   3. Grants or contracts earning less than full IDC, as mandated by the sponsoring agency, will result in proportional reductions in IDC returned to colleges or schools.
      
      
   4. In some cases, it may be possible for the college or school's part of the IDC, the University's part of the IDC, or both parts to be used for cost sharing. Requests for cost sharing should be made at the time of proposal submission using the cost sharing form signed by the appropriate dean(s). Those IDC's used for cost sharing will be deducted from the quarterly IDC return.
      
      
   5. Sponsored projects which have overexpended the amount of the award will reduce the allocations to the college or school in which the principal investigator is associated.