University of Illinois at Chicago Indirect Cost Rate Agreement

The University of Illinois at Chicago (UIC) has recently announced a new Indirect Cost Rate (ICR) Agreement, effective July 1, 2021. This agreement is an important factor in funding research projects at UIC and allows for the recovery of indirect costs associated with sponsored projects.

First, let`s define what indirect costs are. Indirect costs are expenses that cannot be attributed directly to a specific project or program, but are necessary for the operation of the institution. These costs include items such as facilities upkeep, administrative costs, and general expenses.

ICR is the percentage that the institution charges to sponsors to recover these indirect costs. This percentage is negotiated with the federal government and is calculated based on UIC`s expenses. It is important to note that ICR is not a profit center for UIC, but rather a recovery mechanism.

The new ICR agreement for UIC applies to all sponsored projects that are funded by external sponsors, including federal, state, and private agencies. The agreement sets the ICR rate at 57.5% for on-campus projects and 26% for off-campus projects. This rate is in line with the rates negotiated by other research institutions.

What does this mean for researchers? It means that when submitting grant proposals, the ICR rate must be included in the budget. This rate is calculated based on the direct costs of the project, which include items like personnel, supplies, and equipment. The ICR rate is then applied to the direct costs to determine the total budget for the project.

It is important for researchers to understand the ICR rate and budget accordingly. Failure to include the ICR rate in the budget can lead to the project being underfunded. It is also important for researchers to communicate with their sponsors regarding the ICR rate and any budget adjustments that may be necessary.

In summary, the University of Illinois at Chicago`s new Indirect Cost Rate Agreement is an important factor in funding research projects. The ICR rate allows for the recovery of indirect costs associated with sponsored projects and is negotiated with the federal government. Researchers must understand the ICR rate and include it in their budgets to ensure proper funding for their projects.