Indirect Cost Recovery (IRC) Allocation Methodology Recommendations
Last fall, I appointed a mix of faculty and staff to an Indirect Cost Recovery (ICR) review committee to analyze the collection of ICR revenue across UAF. ICR generated $24.8 million in revenue to UAF in FY10, plus another $3.5 million to statewide. The current methodology used to allocate ICR was established decades ago and in need of review.
The committee was tasked to review the current distribution method, gain an understanding of the current sources and uses of ICR, and to prepare a limited number of possible ICR allocation mechanisms based on the input received and data collected by the committee. The committee's work produced three options for my consideration and made recommendations in order of preference. As the committee met, three factors rose to the top as being of immediate concern or priority: return to the unit, debt service for new buildings, and student research support.