Facilities and Administrative Cost Recovery

The resources required to conduct extramural research include those elements which are directly attributable on a project-by-project basis.

The costs that indirectly support extramural research on an institutional basis (e.g., research administration and accounting, purchasing, library, space, maintenance) which cannot be directly attributed to a specific project are defined by the Federal Office of Management and Budget (OMB) as F&A Costs. There are specific rates, referred to as F&A Rates, established for each institution for the recovery these expenditures.

For additional information on F&A rates and related policy information, please visit the Costing Policy & Analysis page.
Resources are available through the Office of Research Sponsored Programs to understand how F&A Rates impact research proposals, grants and contracts.

Commonly referred to as Indirect Costs (IDC), when IDC is recovered by the institution we have historically referred to the funds as Indirect Cost Recovery (ICR). Given these funds are reimbursements for real expenses to the University related to F&A costs, we now refer to the funds received as F&A Cost Recovery Funds.

Allocations of F&A Cost Recovery Funds were changed in 2011-12 as a result of the UC Funding Streams initiative and the implementation of UC Davis’ Incentive-Based Budget Model. Funds are now allocated via the F&A Campus Return Program where a portion of F&A Cost Recovery Funds generated are allocated back to the school/college that performed the research and a portion is held centrally by the Central Campus to support campus-wide initiatives.

Current allocation information can be found below.

F&A Cost Recovery Program Overviews

F&A Cost Recovery - Campus Return Program Overview (PDF)
Diagram showing flow of F&A funds through the Campus Return Program
F&A Cost Recovery Categorical Set-asides (PDF)
Provides definition of key categories that are excluded from the standard Campus Return Program allocations.
B&C Rate Allocations (PDF)
Diagram and detailed description of the B&C ICR flows.
Current Budget Model Allocations

Recent Budget Model Allocations

Additional references and issue papers

Budget Model Allocation Sample (XLXS): Brief excel model showing allocation of F&A Cost Recovery funds for a Unit through the Campus Return Program
11-12 Indirect Cost Allocation Provost Letter (PDF) — Feb 2012
11-12 Indirect Cost Funds Allocation Letter (PDF) — Mar 2012
Indirect Cost Recovery Allocation, Version 2 – June 2012: White paper on ICR as it relates to the Incentive-Based Budget Model implementation in 2011-12 — Jun 2012
ICR Executive Summary – revised: Synopsis of ICR as part of the Incentive-Based Budget Model.