How are Indirect Cost Earnings distributed?
Earnings are calculated on a monthly basis and are allocated quarterly. The current earning formula is as follows: Example: With a Sponsored Programs fund with indirect cost earnings of $100 Indirect organization receives 70% of these earnings, or $70 (and 30% goes to Educational & General revenue) Of this $70, 50%, or $35, is given to the Provost for such activities as: faculty study leaves, summer stipends, and other research initiatives 15%, or $10.50, of the $70 goes to the Primary Investigator 10% , or $7.00, of the $70 goes to the Department Chair of the Primary Investigator and, 25%, or $17.50, of the $70 goes to the Dean of the Primary Investigator Occasionally, Deans/Directors/or PI’s reallocate these earnings, or a portion of them, to co-PI’s, etc. These are special agreements and Sponsored Programs needs to know about them prior to the allocations. These decisions will need to be identified when the grant award is received.
