Procedure:  Distribution of Funds to Support the Indirect Costs of Sponsored Research   

Step 1:  Please read the following information

Typically, all recovered Indirect Costs of research¹ will be distributed to the Faculty/School of the primary investigator of the research agreement, or shared among faculties and schools for inter-faculty/school agreements.

Each Faculty will be responsible for determining how Indirect Costs will be distributed within the Faculty/School and for communicating this distribution policy to all faculty members.

University Research Services (URS) and/or the Research Contracts Unit (within Industry Partnerships) may facilitate communications between faculty members, department heads, and/or deans/associate deans research where appropriate.

Federal Indirect Cost Program (FICP):  Each Faculty/School will be responsible for accounting of all monies received through the FICP grant and report back to University Research Services.  FICP funds can only be used for Indirect Costs of research (http://www.rsf-fsr.gc.ca/administer-administrer/expenditures-depenses-eng.aspx). FICP grant funds may be transferred to Departments, who would then be responsible for reporting on all FICP expenditures to the Faculty Business Officer on an annual basis.

For Affiliated Hospitals, there are Memoranda of Understanding with the University outlining the percentage FICP distribution between the parties.

For Affiliated Hospital-based Research Agreements with or without conditions (i.e., contracts or grants, respectively), the distribution of the recovered Indirect Costs of research revenue (with the exception of FICP) will be negotiated between the dean(s) of the faculty(ies)/school(s) and the Affiliated Hospital(s) as described in the steps below.

Step 2:  Determine distribution method

Distribution of Indirect Costs is determined according to one of the methods listed below.

The methods below do not explicitly consider research projects where all, or a portion, of the research is conducted under purview of a University-based centre or institute.  Should this be the case, there may be consideration and negotiation of Indirect Costs flowing to the centre or institute.

1. For research projects with one PI and no co-PIs, all indirect costs will flow to the Faculty/School of the PI.  
2. For research projects where the PI and co-PI(s) are from the same Faculty/School, all Indirect Costs will flow to the Faculty/School.  Refer to the Faculty/School internal policy for Indirect Costs distribution.
3. For research projects where the PI and co-PIs are from different Faculties/Schools:
   • All Indirect Costs will flow to the Faculty/School of the lead PI and none will flow to co-PI(s)
     OR
   • Indirect Costs will be divided between the Faculties/Schools of the PI and co-PI(s)
     • An agreement between the PI and co-PI(s), Faculty/School associate/vice-deans research, and department heads outlining the division of Indirect Costs will be negotiated and attached to the TRAQ Awards module.
4. For research projects where all, or a portion, of the research is conducted at an affiliated hospital there may be negotiation of the division of Indirect Costs depending on the use of affiliated hospital resources. Generally, the following will apply:
   • For non-Tri-council sponsored research projects where the lead PI performs research in hospital space
     1. 67% of Indirect Costs will be attributed to Faculty/School of the lead PI and 33% of Indirect Costs will be attributed to the Hospital.
     2. PI completes the hospital approval questions in the TRAQ DSS.
   • Indirect Costs may be divided between the hospital(s) and the Faculty/School of the PI and co-PI(s) according to the internal policy of each Faculty/School (typically for large-budget projects)^2:
     1. i. An agreement between the PI and co-PI(s), the affiliated hospital, Faculty/School associate/vice-deans research, and department heads outlining the division of Indirect Costs will be negotiated and the corresponding Research Accounting form (outlining the distribution between PI, department, and faculty/school) completed and attached to the TRAQ Awards module.
     2. ii. PI completes the hospital approval questions in the TRAQ DSS.

Step 3:  Notice of award or execution of Research Agreement

Notice of Award received from external sponsor or Research Agreement with conditions executed.

Step 4:  Certification(s) verification

URS or Research Contracts Unit checks that all certifications have been obtained (if applicable).  If all certifications are in place, URS or Research Contracts Unit sends a research project set-up request to Research Accounting (Finance). 

Step 5:  Accrual of Indirect Costs

Indirect Costs are accrued as Direct Costs are incurred and are distributed to the Faculties/Schools on a monthly basis if applicable.