Research Under-recovery at Proposal Phase

DLCI Responsibility

  • Review proposals from PIs and ensure request is in line with department budget and VPR policies
  • Confirm that sponsor policy does not permit full recovery of the current negotiated F&A rate
  • Prepare the proposal budget in accordance with sponsor guidelines for sponsor-approved rate and base (generally TDC or MTDC).
  • Calculate the under-recovery (UR) of F&A for each year of the project period.
  • Track under-recovery requests using the suggested under-recovery interim form or another mechanism

Actions in Kuali Coeus

Enter the total anticipated under-recovery of F&A for each year of the award in KC, along with the specific source of funds that will cover the under-recovery. (This estimate is for internal purposes only and is not submitted to the sponsor with the proposal.) This does not apply to under-recovery that might result from the application of rates that are fixed to the rates in existence at the time of award on federally funded awards.

  • On the Under-recovery Distribution screen, enter the distribution of Under-recovery by year whether using a summary budget or a detailed budget.
  • On the Budget Summary screen, under Comments, enter a description of the sponsor’s cap on indirect costs (for example, “sponsor limits indirect costs to 10% of TDC”). 
  • In KC Indirect Cost Comments, provide any specific wording to describe the UR plans that need to be included to feed into the Data Warehouse reports.

If the DLCI is assuming responsibility for UR but has not yet identified the source, the DLCI responsibility code 0000004 should be shown as the “source.” At award, the DLCI must provide the specific cost object number(s) for the anticipated source(s) of funds.

If there is more than one investigator or DLCI committing sources of funding, those investigators or DLCIs must provide, in KC, the separate amount and source of funds information. The proposal should route through the investigator's DLCI(s), so they can approve the source of UR funding.