Memorandum Regarding the Change in Overhead Distribution
PLEASE NOTE: This memorandum was distributed in April 2004. Training workshops were also held in April 2004. If you require training, please call 5-1764 and register for the next training session or request a copy of the training information. If you have questions, please refer to the last two paragraphs of this memo for contact information. This memo is on the MAES Web site only for information.
April 6, 2004
TO: Deans, Department Chairpersons, Unit Administrators, Faculty, Staff, Graduate Assistants and Undergraduate Students
FROM: J. Ian Gray
Margaret Bethel
RE: Transmittal/Indirect Cost Split
The Michigan Agricultural Experiment Station (MAES) and MSU Extension (MSUE) met with the Deans of the Colleges of Agriculture and Natural Resources, Natural Science, Human Ecology, Social Science, and Veterinary Medicine to develop a plan which would allow both organizations to begin receiving a share of the indirect costs generated by faculty supported by either organization. Provost Simon approved this change on December 23, 2003. Therefore, effective immediately, the procedure for distribution of Indirect Costs (IDC) on grants has changed. IDC at the Major Administrative Unit (MAU) level will now be distributed according to the base/open ended appointment of the faculty involved with the grant and their effort on the project.
While this will not be a simple change in procedure, it is intended only to change the IDC returned to the MAU, not what is returned to the departments. However, this change may require consultation between units prior to the submission of the grant. The CANR Budget and Finance Office, through the efforts of Chris Sweeley and Jennifer Sweet, have developed a web based tool, which will be located at http://www.canrbfo.msu.edu/, to assist in developing the appropriate percent distribution per PI for each grant. This tool provides information on all MSU appointed faculty no matter how their appointment is funded.
In addition, MAES, MSUE and the CANR Budget Office staff are available to assist should difficulties arise with these calculations. We know that this is not a foolproof system and that there will be exceptions to this arrangement; however, whenever possible please use the distribution resulting from entering the information about the faculty members and their effort on the project via the web based tool.
It is our understanding that certain units, where faculty are housed and accounts are handled, which do not have responsibility for faculty member “base/open ended appointment”, have devised a number of different ways to get IDC returned to their unit. In addition, there may be other “special” arrangements made regarding IDC distribution at the departmental level due to joint appointments, etc. Again, it is not our intent to change these departmental arrangements. But for each faculty member, credit should be given to MAU (57 for MAES, 58 for MSUE, and the appropriate MAU for college general fund) based on their base/open ended appointment.
When information is entered via the web based tool a printed document will show the figures used and the distribution of IDC. In addition, the tool provides an opportunity to alter the figures if this is necessary because of special circumstances or arrangements between and among units. The system is set up to automatically note, on the form, that an alteration to the base/open ended appointment distribution has been made. The resulting form should be printed and attached to the submitted transmittal in order to provide documentation and save time during the signature process.
The distribution of the MAU level IDC should, however, not be changed as this distribution needs to remain consistent with the base/open ended appointment. While we are not trying to speak for the deans, we feel comfortable indicating that the MAU(s) involved need to be consulted, prior to submitting the transmittal form for signature, if the basic distribution of IDC as indicated by the faculty member’s base/open ended appointment and/or effort on the grant is changed.
It is the intent of both MAES and MSUE to continue to redistribute the IDC received to units on the same basis as the colleges do now.
We are widely distributing this information but would appreciate it if you would draw this change to the attention of anyone who handles transmittal forms. We understand that this change will necessitate some transition time and involves change for everyone. We recognize that some transmittal forms will arrive for signature with incorrect information. Should this happen, and a deadline is eminent, we will, for a brief period, sign the form and note that the IDC must be changed following submission of the grant proposal.
Effective May 1, 2004 all transmittals should have the IDC information based upon faculty base/open ended appointment. Transmittals submitted between March 1 and May 1 will be reviewed and the IDC will be adjusted where appropriate.
Training sessions for this new procedure will be conducted during the month
of April. There will be three training sessions:
April 16 in 120 Computer Center from 10-12
April 19, 218 Natural Resources Building, from 10-12
April 27, 105 Farrell Hall, 8:30-10:30
Please RSVP to Elaine Natolie at natolie@msu.edu to indicate which session you will attend. There are a limited number of computers available and we want to be sure we can adequately accommodate everyone.
If you have technical questions about the web tool please call Chris Sweeley or Jennifer Sweet at 5-1764. If you have questions regarding the policy, please feel free to contact Doreen Woodward, Jane Goodrich or either of us.
We thank you, in advance, for your cooperation with this change.
Cc: J. Armstrong
D. Baba
W. Abbett
G. Leroi
L. King
L. Harvey
G. Lemme
CANR Budget & Finance Office
J. Goodrich
D. Woodward
