1. Overview of ICR Rate Components & Uses of ICR Revenue B UDGET AND R ESOURCE M ANAGEMENT D ECEMBER 4, 2013

2. Agenda 2  Today’s Objectives  Provide ICR rate overview and issues  Provide overview of ICR revenue uses  Example of ICR Rate Sheet  Un - Reimbursed Costs  ICR Revenue Uses  Future Issues Impacting ICR Recovery & Questions (?) to Consider

3. F&A Cost Pools Direct Cost Bases ORINSTOSAOIA 2 CFR Part 220 (A-21) requires all University costs be divided into 13 specific functional categories. Four of these functional categories are for Direct Cost “BASES” and nine are for Facilities & Administration (F&A) Cost “POOLS” Federal regulations strictly control the development of F&A rate proposals: Building Depreciation Interest Equipment Depreciation O&M Library 4 Admin Pools

4. The F&A Rate Proposal results in a rate schedule for Organized Research: Base Allocated Amount Rate Capped Rate Administrative  General Administration$380M$28M6.82%  Department Administration$380M$84M22.20%  Sponsored Projects Administration$358M$8M2.27%  Student Services Administration$380M$3M0.75% Subtotal for Administration$121M32.04%26.00% Facilities  Building Depreciation$319M$29M9.03%  Building Interest (Debt Service)$319M$12M3.82%  Equipment Depreciation$319M$8M2.45%  Operations & Maintenance$319M$48M15.07%  Library$6M1.92 Subtotal for Facilities $103M 32.29 On Campus Rate64.33%58.29%  Add: Utility Allowance1.30% On Campus Rate65.63%59.59% Off Campus Rate32.04%26.00% 4

5. Source: Colleges and Universities Rate Agreement for UCSF, dated August 28, 2009. Notes: * GCRC and IPA rates are not listed but are computed and negotiated. ** UCSF Training Grants are typically capped at 8%. UCSF’s federal negotiated F&A rates are*: Effective From Effective To On-Campus Organized Research (OR) On-Campus Instruction (INST) ** On-Campus Other Sponsored Activities (OSA) Off-Campus OR, INST and OSA 7/1/20126/30/201356.5%44.0%34.0%26.0% 7/1/20136/30/201457.0%44.0%34.0%26.0% 7/1/20146/30/201558.0%44.0%34.0%26.0% 7/1/20156/30/201658.5%44.0%34.0%26.0%

6. UCSF Indirect Costs: Some Details (2011-12) 6 Recovered ICR

7. Future Issues Impacting F&A Recovery 7  Increased Government Cost Cutting Scrutiny  Comprehensive Circular Consolidation Efforts  Reduced Federal Money Available  Confirmation of Future Cost Projections  Cost Sharing and Waivers

8. 8 What Activities Does ICR Support? ICR Recovery FY 2012-13: $195.1 M Total need is $589M, only ~33% is covered by Indirect Cost Recovery Debt Payments Capital Needs Technology Central Campus Support Operations & Maintenance of Plant (OMP)

9. What are SOP’s Other ICR Concerns  Areas Needing Further Explanation  What More do You Want to Know  What are Your Future Concerns 9