This guidance is intended to support Principal Investigators (PIs) in understanding how Indirect Cost Recovery (ICR) is distributed and used at the campus, college, academic unit, and faculty levels, consistent with the University of Illinois Office of the Provost Indirect Cost Recovery Distribution Policy & Special Policy.
Facilities and Administration (F&A), commonly referred to as Indirect Costs, are charged to externally sponsored projects to reimburse the University for infrastructure and administrative costs required to support research. These include facilities, utilities, compliance, administrative support, and other shared services. A portion of recovered F&A is distributed back to colleges and units to sustain research activity.
Under the standard campus distribution policy, 45% of F&A-related ICR is distributed to the college side of the institution, and 75% of tuition remission-related ICR is distributed to the academic college of the faculty generating the remission. The internal division of these funds within a college is determined by college policy.
Within the College of Education, ICR is used to sustain the research environment, support academic units, and enable faculty research development. While campus policy governs how much ICR flows to the College, the College has determined that it will retain 55% of the 45% of F&A-related ICR returned by campus, and forward 45% of those funds to the PI home academic unit. The College returns 25% of the 75% Tuition Remission-related ICR return from Campus to the academic unit.
Academic units support sponsored research through space, administrative support, and infrastructure. ICR may be used to offset these costs, provide research seed funding, or support shared resources, applied consistently and transparently. Of the 45% of F&A-related ICR returned to the PI’s home unit, the unit will retain 60% of those funds and forward 40% to the individual PI.
Campus policy does not guarantee individual PI allocations of ICR. Where faculty-level support is provided, it is intended to strengthen research competitiveness and continuity. ICR is not personal income and must be used for allowable University purposes that have a valid business purpose and align with both the Campus and College missions.
Some campus units or centers operate under Special F&A Distribution Policies approved by the Provost. These situations should be discussed during proposal development in coordination with unit leadership and Sponsored Programs.
PIs are encouraged to discuss ICR expectations early, understand the shared purpose of ICR, and consult Finance staff regarding allowable uses of allocated ICR funds. Meetings with your designated Finance team member representative on a regular basis are encouraged.