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Local Funds Use and Regulation

Policy Statement Covering Distribution of Indirect Cost Funds from Externally Sponsored Grants and Contracts - 5D1

Additional relevant policies include Policy Governing Sponsored Projects - 1M2, University Policies and Guidelines Concerning Research and Creative Activities - 1M4, and Review and Approval of Externally Funded Projects - 5B2.

  1. Personnel funded by grants, contracts, or special projects will be reassigned to the designated account for the period stipulated in the contract. State funds that become uncommitted by such reassignment, become negotiable between the chief officer of the functional area and the unit conducting the project. Funds sufficient for the real and necessary cost of academic replacement will go to the researcher's unit.
  2. Indirect cost reimbursement funds generated by externally sponsored grants, contracts, and special projects beyond real and necessary costs of Research and Projects Fiscal Management will be distributed as follows:

    1. Training Grants (Instructional), Public Service, and Other Special Projects:
      67% Generating Unit
      33% Graduate School - Office of Research and Projects
    2. Research Projects:
      40% Generating Unit
      60% Graduate School - Office of Research and Projects

    Funds designated for a unit (under a. and b. above) will be transferred to the unit and will be available for purposes as specified under the policies developed by that unit and approved by the chief officer of the appropriate functional area.

    Funds which accrue to a unit through distribution of indirect costs reimbursement as described in the preceding policy statement are University funds and thus subject to all regulations which pertain to the expenditure of other University funds. For example, all commodities and equipment purchased by indirect cost reimbursement dispersed dollars become the property of Southern Illinois University Edwardsville.

    Subject to limitations in Item 3 below, suggested uses of funds may include: equipment; commodities; temporary faculty or civil service employees; assigned time; grant proposal development; contractual services; professional travel; graduate student support; and student wages. Expenditures of such funds must have the prior approval of the fiscal officer.

  3. Indirect cost reimbursement funds are restricted to the following uses unless approved for other use by the Chancellor or the Chancellor's designee:

    1. Department, School or College research and administrative costs related to grant and contract activity.

    2. Central Administrative costs related to grants and contracts.

    3. Matching funds on grants and contracts.

    4. Costs that may lead to securing grants and contracts.

    5. Reimbursement of grants and contract expenditures disallowed by the granting agency.

    6. Expenditures not reimbursed by the grant or contract agency.

    7. Dissemination of results from grants and contracts.

    8. Instructional symposia and program development related to grants and contracts.

  4. Indirect cost reimbursement funds will be included in the annual budget approved by the SIU Board of Trustees.
    1. The budget will include the total amount of indirect cost reimbursement funds anticipated to be received in the fiscal year.  The funds will be further budgeted in categories consistent with other university fund groups.
    2. Supplemental allocations of indirect cost reimbursement funds received after the adoption of the budget will be handled according to existing relevant policies identified in paragraph 1 of this policy and governed identically to other indirect cost reimbursement funds as outlined in paragraphs two through four of this policy.

Definition of Instruction, Research, or Special Projects for Externally Sponsored Grants or Contracts

Research is broadly defined as all creative, critical, scholarly, and/or empirical activity (other than that normally associated with instruction and curriculum development) which expands, clarifies, reorganizes, or develops knowledge or artistic perception. This definition of research includes the demonstration, implementation, application, and dissemination of research results and those grants designated as research by the granting agency.
Instruction is defined as those activities that are carried out with the purpose of eliciting some measure of education change in a learner or group of learners. These activities include curriculum development, course formats and content, and teaching techniques. Establishing, expanding, or improving opportunities for individuals interested in a career in teaching or administration are also considered to be instructional activities. Instructional activities include both "teaching" and "facilitating" the acquisition or improved understanding of some portion of a body of knowledge. All instructional activities are limited to those which support academic credit.
Public Service is defined as those activities not defined as research or instruction which make available to the public the various resources of the institution. Public Service activities include non-degree instructional programs. They include activities which respond to community interests or needs.

Approved by Chancellor effective 10/23/23
This policy was issued on October 24, 2023, replacing the November 12, 2002 version.
Document Reference: 5D1
Origin: GR 1-84/85; OP 8/2/95; OP 10/23/23

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