Montana State University

Office of Sponsored Programs

Montana State University
P.O. Box 172470
Bozeman, MT 59717-2470

Tel: (406) 994-2381
Fax: (406) 994-7951
E-mail: research@montana.edu
Location: 309 Montana Hall

Director:

Sandy Sward

Sponsored Programs - PRINCIPAL INVESTIGATOR GUIDE


Appendix A - INSTITUTIONAL USE OF Facilities & Administration (F&A) FUNDS

Investment of F&A Funds

Procedure for Central Investments and Distribution of Recovered F&A Funds

  • The F&A Investment Committee will annually identify the fixed costs investments to be made with recovered F&A funds, and make a recommendation to the President for approval.The VPR Office will calculate each department’s share of the central costs (fixed and variable commitments) for the current year, based on their percentage of expenditures the previous fiscal year. To receive an F&A distribution, a department has to generate enough F&A in the previous year to cover more than the department’s share of central costs. Example:

    • If a department had expenditures of $2 million out of an MSU total of $100 million last year, their share of the central costs for the current fiscal year would be 2%.

    • If the total central costs for the current year are $13 million, the department would receive a distribution in the current year if the department generated more than $260,000 in F&A returns during the last fiscal year.

  • Once the central costs are determined and a total amount of recovered F&A for the current year is projected, the difference between the total projected recovered F&A and the central costs will be distributed.Block grants to colleges that do not receive a calculated allocation of F&A will be taken off the top, as will institutional commitments to programs in the colleges, e.g. COBRE and INBRE.The balance will be distributed with half going to the deans and half going to the departments that qualify. Deans and department heads are then responsible for distributing funds to the PIs, with the full expectation that PI’s generating F&A will receive funding.

  • Deans must also decide how much of the distributed F&A funds to her/his college will be distributed to departments whether or not the department received a direct distribution.

For FY10:

  • It is estimated that a total of approximately $16 million of F&A will be recovered. Of this total approximately $13.7 million will be used to fund central costs both fixed ($11.74 million) and variable ($1.92 million). The remaining $2.36 million will be distributed with approximate allocations of the following:

    • $1.84 million to the colleges and departments that generated enough F&A in the previous year to cover their share of central costs.$100,000 to the college’s that receive block grants, to be used in support of faculty scholarship.

    • $420,000 in institutional commitments to university programs such as INBRE and COBRE.