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Policies and Procedures

ABUSF 106

Number:

ABUSF 106

Section:

Finance & Administration

Subject:

Grant Indirect Cost Fund Retention

Date:

March 1, 2010

Issued by:

Vice Chancellor for Finance & Administration

Authorized by:

Vice Chancellor for Finance & Administration

I.          Policy

It is USC and State of South Carolina policy that all budgets for contracts and grant proposals for sponsored projects be submitted using the federally negotiated indirect cost rate for USC Aiken. Proposals may only be submitted with a lesser rate upon approval of the System SPAR office. All indirect cost revenues for projects which are determined by SPAR to be other than research must be remitted to the State of South Carolina. USC is entitled to retain the indirect cost funds for all research projects. Of the total indirect costs retained on USCA projects by USC, USC Columbia keeps 20% and 80% is returned to USC Aiken.

II.        Procedure

a. The central USC Aiken indirect cost recovery account (17110 E150) receives revenues on a monthly basis, based on the expenditures during the previous month from all research accounts generating IDC. This transaction is completed by the Columbia office of Contract and Grant Accounting.

b. The USC Aiekn Grants Accountant will distribute the departmental proportion on a monthly basis to the appropriate department account.

c. Indirect cost revenues will be distributed as follows: 47.5% to the Department/School, 47.5% to the Executive Vice Chancellor's Incentive Account, and 5% retained by USC Aiken centrally to cover grant administration costs.

d. The first time a Department/School receives a research grant generating IDC, the Chair/Head should contact the Contract and Grant Accountant to establish what USC Aiken account the department's portion of IDC should be credited to.

e. Exceptions to the distribution methodology in # 3 above for a specific grant account must be approved by the Chancellor.

III.  Related Policies

IV.  Reason for Revision

Currently under annual review.