Procedure No.:   19.056

Page No.:        1 and 2 of 2

Date Issued:     02/01/95

Issued By:       T.L. Chesnut

I. PURPOSE

To establish funding mechanisms for University recognized Centers and Institutes to insure that the necessary infrastructure is provided during the start-up and early years of a Center or Institute's existence.

II. POLICY

A. Start up funds of up to $25,000 per year for a maximum of three years may be advanced to a University recognized Center or Institute from the Center Revolving Fund.

B. Incentive funds shall be provided in proportion to the indirect costs generated on grants and contracts related to the research program of the Center or Institute.

III IMPLEMENTATION

A. Start-up funds

Up to $25,000 per year may be advanced to a University recognized Center or Institute from the Center Revolving Fund. Up to three years of start-up funding may be provided. Funds must be matched on a 1:1 basis from appropriate departmental or college funding sources. A plan for repayment of the start-up funds must be developed and agreed to by all institutes or center sponsors before funding is authorized. The payback period will be of five years or lesser duration, commencing with the first year after the start-up funding period ceases.

B. Incentive fund

General operating funds proportional to indirect costs recovered on grants or contracts related to the research program of a Center of Institute shall be allocated as follows:

1. Annual grant and contract expenditures of $2 million or less (including indirect costs).
   

   Center or Institute - 33.333 % of indirect costs recovered 
   
   Principal Investigator - 11.375 x of indirect costs recovered 
   
   PI's Department - 4.375% of indirect costs recovered, 
   

   
   

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2. Annual grant and contract expenditures of more than $2 million (including indirect costs).

   Center or Institute - $280,000 
   
   Principal Investigator - 11.375 % of indirect costs recovered 
   
   PI's Department - 4.375% of indirect costs recovered 
   

   
   The intent of this plan is to place a cap or ceiling of $280,000 per year on the amount of Incentive funds that are provided to the Center or Institute for administrative support and infrastructure development and maintenance.

IV. Administrative Procedures

A. Start-up funds

Negotiations are to be conducted with the Vice President for Research and Graduate Studies to establish the amount and duration of start-up funding, the source of matching funds, the payback plan (usually several payback scenarios will be developed including one to insure repayment if the Center is not successful in attracting external funding), and the plan for use of start-up funds.

B. Incentive fund

Allocations will be made on a monthly basis at the end of the month, and will be based on indirect costs income shown in the College and University Financial System (CUFS) reports for the month. The allocation shall be the responsibility of the Office of Research and Sponsored Programs. Accounts will be established and maintained by that office for control of expenditures.

In order to accrue the most benefit from the sponsored programs incentive funds, fund unspent at the end of a fiscal year will be appropriated and made available in the following fiscal year. This will allow all parties to meet long-range goals, particularly for major expenditures (e.g., large equipment items).

V. Use of Incentive Funds

Incentive funds allocated to the PI and Department may be used for activities related to the funded project which was the basis for the allotment and to assist in the development of new projects by providing funds with which to cover the costs of writing new proposals, of travel associated with development of proposals for external funding, of pilot studies for new projects, equipment, and generally to promote research, scholarship, and professional development. The PI's allotment may not be used for the PI's salary.

Incentive funds allocated to the Center may be used for secretarial and technical staff salaries, the director's salary, and for the purposes indicated above.

Kathy Llewellyn revised this file (http://www.ohiou.edu/policy/19-056.html) on April 13, 2000.

Please E-mail any comments or suggestions to "polproc@www.ohiou.edu".