TUC Sponsored Programs

What Happens to IDC?

All recovered Indirect Cost (IDC) from sponsored programs are transferred to CSUN after the deduction of expenses incurred by TUC. The amount transferred is called Indirect Cost (IDC) Net Available to Campus

 

Annual Calculation of IDC Net Available to Campus 

(after closing of each Fiscal Year):

 

Total Indirect Cost (IDC) recovered from all Sponsored Programs

less

    • TUC-'Grant Administration Service Charge' (3.9 % on all sponsored programs expenditures) (see below 'a')
    • Cost of the 'TUC-Sponsored Programs Department' (Post-Award)
    • Partial Cost of the 'Office of Research & Sponsored Projects' (ORSP, Pre-Award)
    • If applicable, allocation to 'Sponsored Programs Reserve for Unallowable Costs' (see below 'b')

= Indirect Cost (IDC) Net Available to Campus 

 

The Indirect Cost (IDC) Net Available to Campus are transferred to and under the control of the Associate Vice President Research and Graduate Studies.

 

 

a) Grant Administration Service Charge

The Grant Administration Service Charge is the fee charged by The University Corporation to the University for the administration of Sponsored Programs.

The Grant Administration Fee consists of:

  • The Costs of the TUC-Sponsored Programs Department
  • 3.9% of the Total Project Expenditure of all Sponsored Programs Administered by TUC*

*The 3.9% percentage represents the effort of the TUC administration for sponsored programs at such as:

  • Accounting (Purchasing, Accounts Payable, PeopleSoft, General Audits, Financial Statements, Accounting Supervision)
  • Human Resources (Hiring, Change of Status, Termination, Benefits Administration)
  • Payroll (Payroll Administration, Payroll Tax Filings etc.)
  • Contracts (Lease Contracts, Service Contracts, etc.)
  • Risk Management (Insurances, Risk Assessment, etc.)
  • Floating of Working Capital (Most sponsored programs are cost reimbursements, funds for expenses are pre- financed before they are reimbursed by the granting agency)
  • General Administration (Front Desk, Customer Service Activities, etc. )
  • Executive Supervision

Sponsored Programs is the single largest department at TUC, representing approximately 70% of its revenue, therefore it also must bear a share of its general administrative expenses.

The Grant Administration Fee is deducted from the pool of recovered indirect cost, due to be transferred to the University. Therefore it does not impact the funds available to the Principal Investigator.

Power Point Presentation: Grant Administration Service Charge (ppt)

 

b) Sponsored Programs Reserve for Unallowable Costs

The purpose of the Sponsored Programs Reserve is to cover potentially unallowable costs and penalties resulting from sponsored programs.

The Sponsored Programs Reserve is jointly administered by The University Corporation and the CSUN - Office of Research and Sponsored Programs. Any disbursement from the reserve requires the joint approval from both offices.

 

Calculation of the Annual Allocation to the Sponsored Programs Reserve

Total Indirect Cost (IDC) recovered from all Sponsored Programs

less

    • TUC-'Grant Administration Service Charge' (3.9 % on all sponsored programs expenditures) (see below 'a')
    • Cost of the 'TUC-Sponsored Programs Department' (Post-Award)
    • Partial Cost of the 'Office of Research & Sponsored Projects' (ORSP, Pre-Award)

Basis for Allocation

X 10%

= Potential Addition to the Sponsored Programs Reserve (if applicable)

Cap: => Up to a maximum of 5% of the Sponsored Programs Volume for each year

 

Write-Off against the Reserve

Write-Off < $500: The Sponsored Programs Analyst will be able to write-off any amounts smaller than $500 to the Sponsored Programs Reserve.

Write-Off < $5,000: The Sponsored Programs Supervisor will be able to write-off any amounts smaller than $5,000 to the Sponsored Programs Reserve.

Write-Off < $35,000: The Director, Sponsored Programs will be able to write-off any amounts smaller than $35,000 to the Sponsored Programs Reserve.

Write-Off < $100,000: The Chief Financial Officer will be able to write-off any amounts smaller than $100,000 to the Sponsored Programs Reserve.

Write-Off > $100,000: The Executive Director together with the Associate Vice President Research will be able to write-off any amounts equal or larger than $100,000 to the Sponsored Programs Reserve.

 

Default of Payment by Granting Agency/Contractual Partner

The Executive Director will determine the default of a payment and will notify the Associate Vice President Research, and the Principal Investigator, and if applicable the Manager of Academic Resources and the Dean of the respective college. Together with the Associate Vice President Research, the Executive Director will determine the allocation of the related charges.

 

Slide 1: The IDC Formula

The calculation of the IDC Rate is relatively simple: All sponsored programs related Cost divided by [almost] all sponsored programs activity. In the numerator, all sponsored programs related costs are represented by Facility Costs (F) and Administrative Costs (A). The denominator represents all sponsored programs activity (revenues/expenses) excluding certain costs that are not eligible for IDC, such as Stipends, Equipment, and any subcontract amounts over $25k. As the numerator, the Facilities and Administrative costs (top) grows, so does the IDC Rate. However, as the denominator grows, the total Sponsored Programs Activity, the IDC Rate decreases. In the last ten years SP-Activities grew from $17m to $32m (+88%) => which created a downward pressure on IDC-Rate. As a consequence, Facilities & Admin. Cost must keep up with SP-Activity to maintain IDC-Rate, Facilities & Admin. Cost must disproportionally exceed SP-Activity to grow IDC-Rate.

 

 

 

Slide 2: The IDC Formula – Focus on Denominator

As stated, the numerator consists of two elements: Facility Costs (F) and Administrative Costs (A). However, the Administrative Costs (A) are capped at a maximum rate of 26%. As with most universities, actual administrative costs at CSUN are much higher, so we are using the full 26%.  However, Facility Cost (F) are unlimited. CSUN’s Facility Cost is currently 19% (45% - 26%). Here there is still room for expansion. As a consequence, only growth in research related facilities & equipment will result in a higher IDC-Rate