CALS Minimum F&A Recovery Policy

The college strives to create a balanced and equitable approach to sponsored research and recovery of Indirect Costs (IDC). The University sets IDC rates based on federal guidelines to cover allowable costs associated with research. These rates are not revenue positive, but rather are set to break even for overhead expenses related to research activities. The 2025 on-campus IDC rate for contract colleges is 57% (negotiated with the Department of Health and Human Services).

As the Land-Grant institution, we have a deep-rooted history and commitment to serving and partnering with our New York state (NYS) stakeholders. The IDC for much of this work is currently set at 18%, well below the cost to deliver this research support. CALS recognizes the importance of performing this work and we accept the NYS sponsored activity at the reduced IDC rate. To be equitable with research activity with sponsors other than NYS, we align the minimum IDC rate to match our heavily subsidized Land-Grant commitment of 18%, although we strive for higher IDC rates when allowed in order to minimize the fiscal deficit for this activity.

This document identifies CALS’ approach when sponsors set IDC rates below 18%. It is our position that if the work is strategically important and aligned with departmental direction, we do not turn funds away or create a disadvantage to grant applicants. Rather, we will consistently apply a process to fill in the gap to achieve the minimum rate. The current minimum rate set by CALS is 18%.

Operating Principles

1. Sponsored research that is deemed a strategic priority by a faculty member, with confirmation from the department chair, will be approved to move forward to determine the means for covering 18% IDC.
2. If sponsored research activity has an IDC rate below 18%, the gap must be filled using the established process and sequence as follows:
- a. The PI seeking the sponsored agreement covers the shortfall using one of the following methods:
  - i. Salary recovery from the sponsored award. Salary recovery means that the grant funds budget to offset salary for faculty or administrative staff who are directing effort toward the grant. In cases where salary recovery is being used, the college allows 100% of the recovery to be allocated towards the 18% gap. Once filled, the standard sharing distribution occurs.
  - ii. PI discretionary accounts, if available. This can include startup funds and other unrestricted accounts, including unrestricted gift accounts.
- b. Any remaining gap will be recovered using departmental discretionary funds or reserves. The college highly recommends departments build reserves in the Research Support category for this use.
- c. Any remaining gap after a & b above are exhausted will be considered for coverage by the college. Requests for college funds (by the chair to their SrAD) must include demonstration of need and confirmation that a & b are not possible.
- d. In certain cases, PI’s have obtained gift funds to cover the IDC gap. While not frequent, this is an acceptable path as long as approved in advance and in coordination with the AAD Director of Development.
- e. Special sponsored funding arrangements that provide core relief in lieu of IDC.
- f. Expectations for CALS PIs who reside in shared departments are as follows:
  - i. If the partnering college has an 18% (or greater than 18%) minimum policy the steps described in 1 & 2 above apply.
  - ii. If the partnering college has a minimum IDC rate of 18% or less, the following applies:
    - 1. PIs must use salary recovery to minimize the CALS IDC shortfall to the extent possible to close the 18% based gap.
    - 2. Any further gap closure will align with partnering college policy. If the college has no minimum IDC policy, no further recovery is required beyond salary recovery.
3. The following activities are exempt from the 18% minimum.
- a. Existing awards transferred (including pending awards, up to signed offer date) from other institutions. Future renewals are not exempt.
- b. Fellowships and grants with the sole aim of funding student support or student activities.
- c. Gifts that are fully administered through AAD and have no RFP or other competitive process. Important Note: If a proposal is administered through CALS OPAS, then the 18% IDC minimum policy applies, even if it is eventually recognized as a gift by Cornell.
- d. Capital Grants.
- e. Recharge grants under certain circumstances. Please review with college leadership to make a determination.

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