Carry Forward of Indirect Cost Return Funds

Policy Number	ACA-040 BUS-022
Effective Date	January 28, 2019
Responsible Office/Person	Academic Affairs
Related Policies	ACA-020; ACA-026; ACA-027; ACA-031

University of Massachusetts Dartmouth

Division of Academic Affairs; Division of Administration & Finance
Policy on Carryforward of Indirect Cost Return Funds

Purpose

To establish a campus policy for managing carryforward balances in indirect cost return accounts.

Scope

This policy applies to business managers with Signature Authority for indirect cost return accounts.

Definitions

Carryforward balances (or carryforward funds) are unexpended balances at the end of the fiscal year as described in ACA-031. For indirect cost return fund accounts the balance consists of revenue less expenditures.

Indirect Cost Return Funds are Research Support Funds distributed by the Provost that are based on recovery of facilities and administrative (F&A) costs on sponsored grants and contracts. Recipients (account designees) are listed in ACA-026. Allowable fund uses are listed in ACA- 027.

Policy

In general, any unobligated balances in Indirect Cost Return Fund (ICR) accounts linked to principal investigators (PIs), departments or colleges automatically carryforward but amounts exceeding a threshold balance must have an approved spending plan. This is to encourage the annual investment of funds to stimulate the research capacity of individual faculty and research units. The PI or unit must submit their plan, along with the appropriate justification to their respective dean or the provost. These requests will also be reviewed by the Provost and Vice Chancellor for Administration & Finance for their approval.

Administrative units (Academic Departments, Colleges, or Centers) that receive indirect returns will be required to complete an annual report to the Associate Provost for Research describing the distribution of annual indirect return funds and how they were used to stimulate research and sponsored program activities.

Indirect Cost Return Funds directed to Centers/Institutes are part of the unit annual budget and do not carryforward. Any residual balance is returned to the provost's Research Support Fund.

Total carryforward amounts exceeding $50,000 and/or unspent after two years for Pis or $100,000 for departments may be subject to reallocation by the Provost to make up for any unrecovered F&A, budget overruns, and/or matching commitments. Any residual funds will revert to the provost's Research Support Fund.