Application of Indirect Cost Recovery Rates

I. Purpose

To establish guidelines for the application of Indirect Cost Recovery (ICR) rates on restricted funds. 

II. Scope

This policy applies to all restricted fund accounts such as grants, contracts, faculty practice and/or designated purpose accounts established under the auspices of the College.

III. Definition

A. Sponsored Projects - Research, training or other projects funded by external sources with a defined protocol and budget.

B. Designated Purpose (DP) Funds - Accounts established with restricted contributions from external sources and expended for a specified purpose other than research.

C. Faculty Practice funds - Accounts established with funds from the College faculty’s professional practices (PCs) for the payment of salaries. 

IV. Policy

It is the policy of New York Medical College to apply its ICR rates on restricted fund accounts in accordance with the sponsor’s, donor’s or chairman’s agreement and stipulations.

V. Procedures

A. Grants and contracts with a budgeted ICR rate will be charged the negotiated rate agreed upon between the sponsors or donors and the College.

B. Designated Purpose Funds 

1. Subject to a 10% ICR rate based on expenditures.

2. Student financial support - full exemption.

3. Equipment and associated installation expense and/or renovations exclusively for research - full exemption.

4. Equipment and renovation funds for the exclusive use of the basic sciences departments shall be presumed, initially, to be for research and/or educational purposes - full exemption.

5. The foregoing ICR rates and exemptions do not apply to funds in DP accounts which, by their governing terms:

a. Provide for an ICR rate greater than the ICR rate specified, or

b. Allow ICR on expenditures that would otherwise be fully or partially exempt.

VI. Responsibility

A. Principal Investigator/Account Signatories  

1. Monitor their restricted funds to ensure compliance with this policy.

B. Restricted Funds Accounting Department

1. Implement and charge restricted fund accounts ICR rates in accordance with this policy.

2. Provide advice and guidance with respect to the interpretation and administration of this policy.