Indirect Cost Recovery – LR 302.2

Back to Business

University of Arkansas at Little Rock
Policy Name: Indirect Cost Recovery
Policy Number: LR 302.2
Effective Date: July 1, 2015


Effective July 1, 2015, indirect cost recovery will be allocated as follows:

  1. Five percent (5%) for the PI to be used to support the research/public service activities, professional development, equipment, etc. The goal for this allocation is to support and encourage research and grant writing. The definition of PI may vary from one individual to an entire department or collection of departments, as designated by the grantee.
  2. Five percent (5%) for the department that supports the PI in his/her research activities, to be used to support and encourage research and grant writing.
  3. Eight percent (8%) to the dean to be used in a similar fashion to support and encourage research and grant writing throughout the college.
  4. Seven percent (7%) to the vice provost for research, to be used to support and encourage research across the campus.
  5. Five percent (5%) to an investment fund assigned to the director of UALR TechLaunch to be used for the pursuit of intellectual property rights and commercialization ventures.
  6. Seventy percent (70%) to institutional overhead.

The provost will issue further guidelines, as necessary, to accomplish the intended purposes of this policy.

This is the first major review and revision of institutional policy on indirect cost income in many years, and it takes into account the changes that have occurred since ORSP was established, and when, several years later, indirect cost income began to be shared with ORSP and the colleges. With a continued assignment of percentages rather than specific dollar amounts, all parties will benefit as grant activity increases, and the total amount of indirect cost income rises. Appropriate offices are now charged to oversee the collection and distribution of the recovered indirect costs.

Source: Chancellor Anderson Memo to VCs, Deans, Dept. Chairs, Committee Members, July 1, 1993
Revised: December 7, 1995; May, 1995; July 3, 1996; September 17, 1996; July 2, 1997; July 6, 2000; April 11, 2001; May 18, 2004; September 25, 2006; April 16, 2007; July 1, 2007; November 17, 2009; July 1, 2013; July 1, 2015
Approved By: Chancellor Joel E. Anderson
Custodian: Budget Director/Office of Finance and Administration