University of Pittsburgh

Compensation & Incentive Plans

Guidelines for the Distribution of Research Indirect Cost Revenue and Research Costs

Overview

Increasingly, departments, institutes/centers and schools are jointly recruiting research faculty and sharing the costs of the faculty member in some manner.  It also follows that the earnings of the faculty member will be shared in some manner.  In order to provide a framework to appropriately distribute the costs as well as the revenue, the following guidelines are adopted.

Guidelines

  • Applies to all departments and designated institutes/centers as well as administrative units and schools within the Health Sciences.  Appropriate institutes/centers will be designated by the Senior Vice Chancellor.
  • Applies to all Health Science faculty that are:
    • new faculty that are jointly recruited and the financial responsibility is shared in some manner; and
    • present faculty where there is a change in physical location and/or financial responsibility

The following principles will apply:

  1. A letter of commitment will be generated by the parties sharing the expenses indicating the responsibility for start-up funding and ongoing direct funding as well as including provisions for costs expended if new recruits were to leave the University prior to recovery of costs.
  2. All indirect cost recovery from grants and contracts will be credited to the entity that is responsible for the space costs where the faculty member is conducting his or her research.  For Health Science Schools, other than the School of Medicine, the central University will be credited with the indirect cost recovery and the schools will receive a portion of the indirect cost recovery in accordance with the University Allocations for Research memorandum dated October 25, 1993.
  3. All research grants and contracts will be managed by the entity responsible for the space costs where the faculty member is conducting his or her research.  Health Science Schools, other than the School of Medicine, will manage research grants and contracts conducted in their space.
  4. The entity receiving the indirect cost recovery shall be responsible for:
    • space costs
    • step-down costs
    • overhead costs including proportional University/UPMC allocations
    • faculty research incentives and appropriate fringes benefits which will be paid through the faculty member's home department (school). For the Health Sciences Schools, other than the School of Medicine, the incentives and fringes will be paid by the school.
    • a payment to the faculty member's home department of an amount equal to 5% of the indirect cast revenue received from the faculty member's research grants. This includes payment for any home department (school) associated overhead cost. For Health Science Schools, other than the School of Medicine, the 5% will be paid by the school.
  5. Any exceptions to this policy will be negotiated between or amongst the parties and approved by the Senior Vice Chancellor for the Health Sciences.