A 10% indirect cost (IDC) is assessed on expenditures made from restricted gift accounts. The IDC revenue is posted to a high-level account per college, and the IDC expense is posted to the restricted gift account. See the Indirect Costs Recovery Entry section below for more details.
All restricted gift accounts receive a 10% administrative cost charge on expenses, except for the following:
Complete a Return of Indirect Cost on Restricted Gift Accounts form with dean/director approval and send it to the Division of Financial Affairs (DFA) with new account documentation. Before the IDC is waived, all requests will be forwarded for approval to the University Budget Office.
Endowed units must complete this form to request a waiver of IDC that has been charged to a restricted gift account. Once the form is submitted and approved, the charge for the cost will be reversed. If the "Effective Date of Change" is prior to the current month, the Accounting office will prepare a journal to make the change retroactively.
Send a memo or letter from the college dean to DFA with new account documentation.
IDC attributes are available on the KFS Account search screen, located under the Contracts and Grants tab.
The table below shows attributes for restricted gift sub-fund programs and for an approved IDC waiver:
|Sub-Fund Program||Indirect Cost Recover Type Code||Indirect Cost Rate|
|Accounts with approved waiver||25||000|
Indirect cost recovery (ICR) entries are automatically posted on a nightly process in KFS. The ICR entry is calculated and posted based on the sum of total expenses incurred per restricted account. The credit entry posts revenue to a high-level unrestricted college account. The Indirect Cost Recovery Account Number can be found under the Indirect Cost Recovery Accounts tab for the account in KFS. The ICR account number per college can be located at on the Indirect Cost Recovery Account Matrix (PDF, 48 KB).
The entry is as follows:
Both object codes (9080 and 4270) report to the Contributions line on the Statement of Activities and net to zero.
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