1. The Revised Infrastructure Policy Effective 9/01/05 and Sponsored Projects Office of Research Administration Jesse Charlton May 13, 2009

2. Office of Research Administration 2 January 26, 2006 Background The infrastructure charge (ISC) is an assessment to pay for building- related operating and maintenance costs such as custodial costs, routine maintenance, insurance, fire protection, and other safety costs. In FY05 the Provost Office, at the direction of the Board of Trustees, revised the infrastructure policy raising the rate to 8% from 6% and increasing the number of expenditure types subject to ISC. In addition non-sponsored PTAs may be charged ISC on general ledger revenues and transfers. This revision is effective September 1, 2005 (FY06) and applies to all sponsored and non-sponsored PTAs. The Budget Office administers the infrastructure charge program.

3. Office of Research Administration 3 January 26, 2006 Documentation 1.Administrative Guide Memo 37.3 “Infrastructure Charges” at http://adminguide.stanford.edu/37_3.pdf. http://adminguide.stanford.edu/37_3.pdf Revised (8%) ISC Policy 2.The Budget Office guideline “Implementing the Revised Infrastructure Charge” at http://ora.stanford.edu/rates/infraRev_05.asp http://ora.stanford.edu/rates/infraRev_05.asp 3.OSR’s “Revised Infrastructure Charge Guideline” at the OSR desk top procedures web page. a. “OSR Revised Infrastructure/Charge Guideline” b.Flowchart – “Sponsored Awards and the Application of the Revised Infrastructure Policy” 4.OSR Pre-Approved IDC Waiver ListOSR Pre-Approved IDC Waiver List

4. Office of Research Administration 4 January 26, 2006 Documentation - continued Prior (6%) ISC Policy 5.The Budget Office guideline “Implementing the Infrastructure Charge (ISC) Policy” dated May 11, 1998 can be found at http://ora.stanford.edu/rates/infraRev_4.asp. http://ora.stanford.edu/rates/infraRev_4.asp 6.OSR guidelines to implementing the prior (6%) ISC policy are at “Implementing the Infrastructure Policy Prior to September 1, 2005” on the OSR desk top procedures page. a. “OSR Infrastructure/Utility Charge Procedure” b.Flowchart – “Implementing ISC/UC Policy in Oracle Financials

5. Office of Research Administration 5 January 26, 2006 Documentation - continued Additional Documentation 7.“Burdening Adjustments Guidelines” on the OSR desk top procedures page 8.Stanford Rates web page at http://ora.stanford.edu/rates/default.asp for the ISC rates and the Burden Expenditure Type Mapping http://ora.stanford.edu/rates/default.asp 9.Research Policy Handbook Section 3.10 “Indirect Cost Waivers” at http://www.stanford.edu/dept/DoR/rph/3-10.html http://www.stanford.edu/dept/DoR/rph/3-10.html

6. Office of Research Administration 6 January 26, 2006 Terminology Waiver: The sponsor, PI or department is not required to pay the infrastructure. The sponsored award is not assessed the infrastructure charge. Waivers not already documented in the revised ISC policy will seldom be granted by the Provost/CFO. Exemption: The revised ISC policy allows the PI/department/school to pay the infrastructure by offering an alternate PTA to accept the charge when the sponsor will not pay the infrastructure.

7. Office of Research Administration 7 January 26, 2006 Revised Infrastructure Policy Highlights The Budget Office “Implementing the Revised Infrastructure Charge (ISC) Policy” guideline documents the revised infrastructure policy for sponsored and non-sponsored PTAs. The revised ISC charge policy applies to all sponsored awards assessed an F&A rate of 0%. The policy allows certain sponsored awards to continue under the prior (6%) ISC policy. For awards subject to the revised (8%) ISC charge:  The policy is applied by award or competitive segment not by task.  Sponsored awards charged an IDC rate between 0% and 8% are not subject to infrastructure. They are charged their IDC rate.

8. Office of Research Administration 8 January 26, 2006 Revised Infrastructure Policy Highlights - continued  All U.S. government sponsored awards (federal,state and local governments) are waived from infrastructure.  ISC is waived on all awards owned by SLAC org codes AHYA, AHZA, AHZH, AHZO.  The PI/department may need to request an exemption from the Provost/CFO before they can use an alternate PTA.  The utility charge is eliminated.  Prior policy ISC waivers such as off-campus, travel grant, Sloan award, etc. are eliminated.  Cost sharing/overdraft awards are waived from ISC.

9. Office of Research Administration 9 January 26, 2006 Revised Infrastructure Policy Highlights - continued  University Research awards are waived from ISC.  The institutional allowance on fellowships is waived.  Unexpended funds on a fixed price sponsored award which have borne an indirect cost rate of 8% or greater are not subject to ISC when transferred to a non-sponsored PTA.  The existing process of moving ISC charges to an alternate PTA will continue. The alternate PTA is coded at the task on the sponsored project.

10. Office of Research Administration 10 January 26, 2006 Applying the Revised ISC Policy To a Sponsored Award Assessed an F&A Rate of 0% Which ISC Policy Applies? All sponsored awards are subject to the revised (8%) ISC policy except: Sponsored awards with award start dates prior to 9/01/05. These awards are subject to the prior (6%) ISC policy. Sponsored awards made in response to previously - submitted (i.e., prior to 9/01/05) sponsored projects proposals until the end of the award or competitive segment. This includes awards with start dates on or after 9/01/05. When these projects are renewed, funding must be requested using the revised (8%) ISC policy. Effective 9/1/05, if a sponsor/program is not waived or exempted, the PI/administering department must include the ISC charge in their proposal/budget request to the sponsor. Institutional officials are responsible for reviewing proposals to make sure that the charge has been included, prior to endorsing the proposal on behalf of Stanford, or that an approved “exemption” is on file.

11. Office of Research Administration 11 January 26, 2006 The Sponsored Award is subject to the Revised 8% ISC Policy Is the Sponsored Award Waived? All U.S. government sponsored awards are waived from infrastructure. This includes awards directly funded by or subject to “flow-through” from federal, state or local governmental agencies. Awards from foreign governments and non-government sponsors are subject to infrastructure. ISC is waived on all awards owned by SLAC org codes AHYA, AHZA, AHZH, AHZO. The PI/department can request a waiver via e-mail to the Budget Office. The Budget Office has stated that these waivers are unlikely to be approved by the Provost/CFO.

12. Office of Research Administration 12 January 26, 2006 Applying the Revised (8%) ISC Policy when the Sponsor will not pay the ISC Exemptions and Alternate PTAs If the sponsor will not pay the infrastructure charge, the PI/department/school may pay the ISC charge as follows: The PI/department must request to pay the infrastructure via an alternate PTA by submitting a "Request for Infrastructure Exemption" form to the Budget Office for approval by the Provost/CFO. Exemptions must be approved in advance of submission of a proposal.Request for Infrastructure Exemption The infrastructure charge is exempted on all non-government sponsored awards where the sponsor has a written policy stating that it does not pay indirect costs, and the sponsor/program is on the OSR pre-approved IDC Waiver List. An approved “Request for Infrastructure Exemption” is not required to use an alternate PTA.pre-approved IDC Waiver List

13. Office of Research Administration 13 January 26, 2006 Revised 8% ISC Policy and The Notice of Award Proposed language for the Notice of Award Revised 8% ISC Policy Sponsor will pay revised 8% ISC ISC exempted per revised 8% ISC PolicyAlt PTA _________ ISC exempted by Provost/CFO dated ______ Alt PTA _________ ISC waived per revised 8% ISC Policy ISC waived per Provost/CFO dated ______ Prior 6% ISC Policy Prior 6% ISC Policy applies (existing award) (proposed prior to 9/01/05)

14. Office of Research Administration 14 January 26, 2006 The Revised 8% ISC Policy and the Burden Schedule What Burden Schedule Do I Use With the Revised (8%) ISC Policy? For sponsored awards subject to ISC or exempt from ISC, use the following burden schedule: ISC_TGP_P06 Non-Government For sponsored awards waived from ISC, use the following burden schedules: FB_VAGovernment FB_VA_TGP Non-Government ISC is assessed on expenditure types 5xxxx and is charged to exp type 58915 on the sponsored award or exp type 58935 on the alternate PTA. ISC rates and a list of expenditure types subject to ISC can be found on the Stanford Rates web page. Look for the link to the Burden Expenditure Type Mapping schedule.Stanford Rates

15. Office of Research Administration 15 January 26, 2006 Award Set Up The OSR Revised Infrastructure Charge Guideline at Appendix A defines how awards subject to the revised (8%) ISC policy are coded in the Oracle financial system. Appendix B addresses how to code an alternate PTA in Oracle. The institutional allowance on non-government fellowships is not subject to ISC. However, the fellowship may be subject to ISC. In this case, the institutional allowance is charged to a separate task with an override burden schedule on the task that does not charge ISC. A new competitive segment subject to the revised (8%) ISC policy added to a sponsored award in existence prior to 9/01/05 may require an override burden schedule on the task.

16. Office of Research Administration 16 January 26, 2006 ISC and Alternate PTAs The OSR Revised Infrastructure Charge Guideline at Appendix B addresses how to code an alternate PTA on a sponsored award in Oracle. Alternate PTAs are coded at the task. There is only one alternate PTA per task. All of the ISC charged to the task will be moved to the one alternate PTA regardless of the number of different projects/awards associated with the task. Infrastructure charged to a task with an alternate PTA is moved to the alternate PTA via journal weekly. The charge appears in the alternate PTA in expenditure type 58935. ISC charges incurred in one month may be moved in the next month.

17. Office of Research Administration 17 January 26, 2006 ISC and Alternate PTAs continued ISC charges cannot be moved from sponsored PTAs where a status change to the project, task or award will not allow transactions to be transferred. Burden adjustments made via ijournals are not moved to an alternate PTA. You must make sure you adjust the correct PTA and only use expenditure types 58915 or 58935. The alternate PTA should have an award start or end date that will accept ISC/UC charges. For instance, if an ISC transaction is dated prior to the start of the alternate PTA it cannot be transferred to the PTA. If you are changing the burden schedule on an award that is charged ISC, remember to review and adjust the task flexfields.

18. Office of Research Administration 18 January 26, 2006 Example Sponsored Award Subject to the Revised (8%) ISC Policy with an Exemption (Alt PTA) The award is UAATS, a non-government award funding one project (1099420) with one task (100). The sponsor has a written policy of not paying indirects and is on the OSR Pre-Approved IDC Waiver List so no exemption request is required. The award is subject to the revised ISC (8%) policy. The alternate PTA is 1004316-100-EAGOD. The burden schedule is ISC_TGP_P06.

19. Office of Research Administration 19 January 26, 2006 Example continued Shortcut to task flex field! We then go to task 100 on project 1099420 and code the task flex field as ISC_POLICY_EXEMPTION in the SP_ISC field and enter the alternate PTA in the SP ISC ALT PROJECT, TASK and AWARD fields.

20. Office of Research Administration 20 January 26, 2006 Its up to you to code infrastructure right! A Reminder