How is the ICR Cost Rate Determined?
The Facilities and Administrative Cost Rates (also known as ICR) are negotiated through the Office of Health and Human Services.
Currently, Metro State's approved federal ICR rate is a percentage of total allowable costs. All contract or grant proposals must include all direct and ICR costs at the full rate in the proposed budget, except where explicitly limited by federal statute or other written sponsor policy.
Elements (Cost Pools) of the ICR Rate
The negotiated ICR rate is divided into two recovery areas: on-campus and off-campus activities.
On-campus activities are identified as activities which are performed at the location of the project. The on-campus activities rate is allowable at a higher percentage since the institution is providing expenditures not accrued at off-campus locations. On-campus activities cover the cost of such expenses, as:
§ Building and improvement depreciation
§ Equipment depreciation
§ Interest
§ Operation and maintenance
§ General administration
§ Department administration
§ Sponsored projects administration
§ Library
§ Student services administration
Off-campus activities are identified as activities which are conducted at locations other than in College owned or operated facilities, such as: research sites at another college or university, field location or offices and/or labs which belong to a corporate sponsor, etc. Since the expense of performing these activities are lower to the sponsored institution, the ICR rate is lowered as well, and is usually recoverable by the off-campus location as part of their budgeted expense. Off-campus activities cover the cost of such expenses, as:
§ General administration
§ Departmental administration
§ Sponsored projects administration
OMB Circular Guidelines A-21 the Federal government cost principles for universities requires the distribution basis for recovering ICR to be modified total direct costs (MTDC). Therefore, ICR will be assessed against all items in the budget EXCEPT the following:
§ Capital expenditures (buildings, individual items of equipment, and alterations and renovations) of $5,000 or more and a useful life of more than one year
§ The portion of each subaward in access of $25,000
§ Rental/maintenance of off-site activities
§ Student tuition remission
§ Scholarships and fellowships